Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. BitMEX Pleads Guilty: BitMEX has pled guilty to violating the Bank Secrecy Act (BSA) due to inadequate Anti-Money Laundering (AML) measures from 2015 to 2020. This allowed for large-scale money laundering and sanctions evasion.

2. CFTC: BTC and ETH are Commodities: CFTC Chair Rostin Behnam reaffirmed that Bitcoin (BTC) and Ethereum (ETH) are commodities, advocating for the CFTC's regulatory oversight.

3. 📈Technical Analysis Masterclass - Bitcoin faces bearish signals and significant external pressures! Know what to do in this current market uncertainty by watching UseTheBicoin’s latest Youtube video “Mt. Gox and Germany has more Bitcoins to Sell! (BTC)” or join our Official Discord Channel for more alpha!

4. SingularityNET and Filecoin Partnership: SingularityNET has partnered with the Filecoin Foundation to integrate decentralized AI and Decentralized Physical Infrastructure Networks (DePIN).

5. Terraform Labs Company Sell Off: Terraform Labs, facing a $4.5 billion settlement with the SEC, plans to sell four of its businesses: Pulsar Finance, Station, Enterprise, and Warp.

   
   All this and more in today’s headlines!

📰 News Highlights:

BitMEX Pleads Guilty [Source][Source][Source]

BitMEX, a prominent cryptocurrency exchange, has pled guilty to violating the Bank Secrecy Act (BSA) by failing to implement a robust Anti-Money Laundering (AML) program. U.S. Attorney Damian Williams announced the guilty plea on July 10, highlighting that BitMEX operated without meaningful AML measures from 2015 to 2020.

This violation allowed the platform to be used for large-scale money laundering and sanctions evasion, posing significant risks to the financial system.

BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed had previously pleaded guilty to similar charges in 2022 and received probation, but the recent guilty plea underscores the ongoing legal and regulatory scrutiny faced by the exchange.

The U.S. Department of Justice noted that BitMEX's founders were aware that their lack of AML protocols affected U.S.-based users, in clear violation of federal law.

The exchange, incorporated in the Republic of Seychelles under HDR Global Trading Limited, could see responsible parties facing up to five years in prison and substantial fines.

CFTC: BTC and ETH are Commodities [Source][Source]

Rostin Behnam, Chair of the U.S. Commodity Futures Trading Commission (CFTC), reaffirmed that Bitcoin (BTC) and Ethereum (ETH) are commodities, advocating for his agency's regulatory oversight of these assets.

In his testimony before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry on July 9, Behnam referenced a recent Illinois court ruling that classified Bitcoin and Ethereum as commodities.

This ruling was part of a $120 million Ponzi scheme case involving an Oregon man and also categorized Olympus (OHM) and KlimaDAO (KLIMA) as commodities.

Behnam outlined five key legislative priorities, including tailored rules for cryptocurrencies, a permanent funding model for the CFTC, comprehensive disclosure requirements, and enhanced Know Your Customer (KYC) and AML protocols.

Behnam also stressed the importance of a balanced framework to determine whether tokens are commodities or securities under existing law, along with the necessity for a comprehensive education and outreach program on crypto assets in the U.S.

 📈Technical Analysis Masterclass:

Mt. Gox and Germany has more Bitcoins to Sell! (BTC)

Current Market Status

• Bitcoin Price: Trading above support levels but facing uncertainties.

• Rising Wedge Pattern: A bearish indicator suggesting potential downward movement.

• Resistance Rejection: Bitcoin failed to break through resistance, dropping from $59,000 to $57,000, indicating strong selling pressure.

Influencing Factors

• Germany's Bitcoin Sales:

  • Ongoing Liquidation: Germany is halfway through selling its Bitcoin holdings.

  • Market Impact: This large-scale sell-off is putting downward pressure on the market, and continued sales could worsen this trend.

• Mt. Gox Creditor Distributions:

  • Significant Holdings: Mt. Gox holds a substantial amount of Bitcoin, estimated to be five times more than Germany's holdings.

  • Market Flood: Distribution to creditors could add significant supply to the market, driving prices further down.

Rising Wedge Pattern

• Bearish Signal: The pattern occurs with higher highs and higher lows, narrowing over time.

• Weakening Momentum: Indicates potential for downward movement, especially with ongoing Bitcoin sales.

Strategic Advice

• Observation Over Action:

  • Market Volatility: Current conditions suggest high volatility; premature trading could lead to losses.

  • Watch and Wait: Consider observing the market closely rather than making active trades.

• Preparation for Rebound:

  • Support Levels: Monitor the $51,000 to $52,000 range as a potential buying opportunity if the market rebounds from this point.

Sometimes refraining from trading is the best strategy to protect your capital in uncertain times. Keep up-to-date with market developments and be patient for clearer signals before making trades.

SingularityNET and Filecoin Partnership [Source][Source]

SingularityNET, an artificial intelligence (AI) platform developer, has partnered with the Filecoin Foundation to integrate decentralized AI and Decentralized Physical Infrastructure Networks (DePIN).

The collaboration aims to maintain decentralization, AI ethics, and data provenance while enhancing both industries. Announced on July 9, the partnership will establish an AI ethics working group to ensure ethical AI development and deployment.

Ben Goertzel, founder and CEO of SingularityNET, emphasized the importance of minimizing biases in AI models and directing AI towards beneficial applications.

The partnership's short-term goals include using Filecoin’s Lighthouse SDK for metadata storage, while mid-term objectives involve integrating Filecoin’s technology stack into SingularityNET to improve security and support AI-generated data storage infrastructure.

Long-term plans focus on using Filecoin to manage Knowledge Graphs, a critical element of SingularityNET’s Knowledge Layer initiative.

💡 Feature of the Day: 

Terraform Labs Company Sell Off [Source]

Terraform Labs, a bankrupt crypto firm, is planning to sell four of its businesses as part of a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC). Announced on July 9, the sale will include Pulsar Finance, a portfolio tracking platform; Station, a crypto wallet platform; Enterprise, a no-code decentralized autonomous organization (DAO) management platform; and Warp, a smart contract automation protocol.

The sale aims to maximize value for creditors and stakeholders as part of Terraform's broader wind-down of operations.

Terraform's $4.5 billion settlement with the SEC includes nearly $3.6 billion in disgorgement, a $420-million civil penalty, and around $467 million in prejudgment interest. Co-founder and former CEO Do Kwon also agreed to pay $110 million in disgorgement, $14.3 million in prejudgment interest, and an $80 million civil penalty.

The SEC settlement effectively bans Kwon and Terraform from the crypto industry, concluding the SEC’s February 2023 lawsuit that charged them with securities law violations and fraud.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com