Good Morning Crypto Enthusiasts!

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

We've got some exciting news for you today. Remember the Ledger Hack we talked about last week? Well, we've got an update on that.

Su Zhu and Kyle Davies, the awesome founders of Three Arrows Capital, have over $1.1 billion in assets frozen to help pay back creditors, and much more..

Check out today's top headlines below!

📰 News Highlights:

💼 Ledger Hack Update: Ledger Pledges Reimbursement After Connect Kit Exploit (Link)(Link)(Link)

Ledger, the fortress of hardware cryptocurrency wallets, is taking responsibility in the aftermath of the Ledger Connect Kit exploit.

Approximately $600,000 in assets have been stolen from users through Ethereum Virtual Machine (EVM) DApps. On on X (formerly Twitter) Ledger, has declared its commitment to reimburse all affected users. The firm stated:

The exploit, which targeted decentralized applications using Ledger's connector library, sent shockwaves through the crypto realm on Dec. 14, 2023. Ledger's move not only promises restitution but also signals a strategic shift by disallowing blind signing with Ledger devices come June 2024.

🔒 BVI Court Freezes Three Arrows Capital Founders’ $1.1 Billion Assets (Link)(Link)(Link)(Link)(Link)

Buckle up! In a plot twist straight out of a legal thriller, a British Virgin Islands court has dropped the gavel on Three Arrows Capital founders Su Zhu and Kyle Davies, along with Davies' wife Kelly Chen. The court, has frozen up to $1.1 billion of their assets.

This dramatic development comes in the aftermath of Three Arrows Capital's bankruptcy filing in July 2022, leaving behind more than $3.5 billion owed to creditors.

Teneo, the company's liquidator, spilled the digital beans, revealing that the freezing order, dated Dec. 18, aims to prevent the trio from tampering with their global assets.

The court drama unfolds against the backdrop of Zhu's September arrest in Singapore and a subsequent legal dance with 3AC’s liquidator Teneo, vying to recover $3.5 billion for the distressed creditors.

🤝 South Korea's Financial Regulator Meets Gary Gensler (Link)(Link)

A diplomatic rendezvous is on the horizon! Lee Bok-hyun, the head of South Korea's Financial Supervisory Service (FSS), is set to break bread with none other than Gary Gensler, chair of the United States Securities and Exchange Commission (SEC). The meeting, scheduled for January, will delve into the current state of the crypto market and the supervisory policies shaping its trajectory.

This diplomatic tête-à-tête comes at a pivotal juncture, with speculations rife about the SEC approving multiple spot Bitcoin exchange-traded products in January.

The FSS, gearing up for policies regarding crypto investor transactions, and the U.S., entangled in the Terra co-founder Do Kwon's extradition saga, set the stage for crucial discussions.

🚨 2 Risks Lurking Around Bitcoin ETF Launch 🤔 (Link)

The imminent launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S. brings not only excitement but also potential pitfalls. Coinbase's David Duong and Greg Sutton, in a Dec. 19 podcast, unveil two hidden risks that could cast shadows on the anticipated ETF debut.

As the countdown to the potential approval of spot Bitcoin ETFs ticks away, Coinbase researchers warn of a sourcing issue for institutions. With the need to buy Bitcoin from regulated sources, what if demand outstrips supply, leaving ETF issuers scrambling? The second risk, a more cryptic challenge, revolves around the narrowing profitability of the popular "basis trade" strategy.

The surge in volume on spot Bitcoin and futures contracts has transformed the basis trade landscape, but as institutional investors gain direct exposure through spot ETFs, profitability may dwindle. As the crypto community braces for a potential ETF milestone in January, these concealed risks add an intriguing layer to the unfolding narrative.

💡 Feature of the Day:

🎵 Base Blockchain Mints First NFT Single (Link)(Link)(Link)

Get ready to groove to the blockchain rhythm! Base, the Coinbase-powered blockchain ecosystem, is hitting the digital airwaves in collaboration with Sound.xyz.

This dynamic duo enables artists to mint music on-chain, and the inaugural track is none other than a blockchain-themed anthem titled "Based." Artists Reo Cragun and Heno drop the mic with lyrics celebrating bringing "a billion on-chain."

The collaboration, unveiled on X (formerly Twitter), positions Base's Ethereum layer 2 ecosystem as a game-changer. Boasting lower gas fees and faster transactions, it promises a musical revolution in the Web3 space. 

As the first blockchain-powered song echoes through the digital realm, Sound.xyz foresees tapping into over 100 million users on the Base network, heralding a new era where music and blockchain seamlessly converge.

🔍 Industry Insights: 

NEAR: On The Rise, But Can It Dodge The Bears? (Link) 

NEAR, the blockchain platform focused on usability and developer experience, is scaling new heights. Reaching its highest price since January 2022, it's leaving investors wondering: is this a sustainable rally, or will the bears bring it crashing down?

Bullish Momentum:

• NEAR's price recently hit $2.81, a significant jump from its 2023 lows.

• This surge is fueled by on-chain integrations, a well-defined roadmap, and unique features like eco-friendly Proof of Stake and decentralized exchanges.

• The platform's growing ecosystem, including play-to-earn games and metaverse integrations, adds further fuel to the fire.

Bearish Whispers:

• The January 2022 all-time high of $20.42 still looms large, casting a shadow on the current rally.

• The broader crypto market remains volatile, with potential for sudden downturns.

• Increased regulatory scrutiny could also hamper NEAR's progress.

The Big Question:

Can NEAR hold its ground and break through the January high, or will the bears maul its momentum?

Analysts are cautiously optimistic. The strong fundamentals, coupled with rising developer interest and community engagement, paint a promising picture. However, the overall market sentiment and unforeseen events could change the tides quickly.

Stay tuned, buckle up, and keep your eyes on NEAR! This could be a turning point for the platform, but the bears haven't gone into hibernation yet.

Here are some additional points to consider:

• NEAR's recent beta wallet launch and upcoming mobile accessibility updates demonstrate its commitment to user experience.

• Non-EVM chain support allows NEAR to integrate with other blockchains, expanding its reach.

• The community-driven nature of NEAR could foster long-term sustainability and resilience.

Ultimately, the path ahead for NEAR is uncertain, but it's an exciting journey to watch unfold. Whether you're a seasoned investor or a crypto-curious newcomer, keep an eye on NEAR – it might just surprise you.

Today’s Sponsor:

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😂 Crypto Meme of the Day: 

And those are the top crypto news stories of the day.

See you all tomorrow for Friday’s edition!

Jonathan Gibson
UseTheBitcoin.com