Good Morning Crypto Enthusiasts!

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

1. MicroStrategy's X Account Hacked: Hackers exploited MicroStrategy's X account to promote a fraudulent $MSTR token airdrop, deceiving nearly 200,000 followers into visiting a counterfeit webpage. Allowing the perpetrators drain their hot wallets and, resulting in losses exceeding $440,000.

2. Binance's $4.3B Plea Deal Approved by Judge: A federal judge approved Binance's $4.3 billion plea deal with the U.S. Department of Justice. The agreement mandates the exchange to pay $4.3 billion in fines and subject itself to an independent compliance monitor.

3. Kraken Challenges SEC Lawsuit: Crypto exchange Kraken filed a motion seeking the dismissal of the SEC's lawsuit against it. The motion contests the SEC's claims, and refutes the presence of essential elements defining an "investment contract" under the current laws.

4. FTX Resolves Dispute, Sells European Arm for $33M: Bankrupt exchange FTX reached an agreement in court to sell FTX Europe back to its original owners for $32.7 million. The settlement returns control of the Swiss startup Digital Assets AG, (rebranded as FTX Europe) to its founders.

5. 💡Feature of the Day - Crypto Industry Secures Important Legal Victory! What you need to know: The Texas Blockchain Council (TBC) and Riot Platforms have won a lawsuit against U.S. energy officials. The court has ordered a temporary ban on collecting data from cryptocurrency miners and has stopped the Energy Information Administration (EIA) from sharing the collected data. This ban will stay in place until the legal proceedings are finished.

6. 📜 Your Daily Thread - Love reading interesting Twitter and Reddit Threads? You’re in for a treat! Today we’re checking out some tips on “How to Trade NFTs like an Insider!”

   

   
   
   All this and more in today’s headlines!

📰 News Highlights:

🔒 MicroStrategy's X Account Hacked [Source][Source][Source]

MicroStrategy's X account fell victim to hackers, who exploited the platform to promote a fraudulent airdrop of the $MSTR token, a sham endeavor.

The attackers, posing as MicroStrategy, lured nearly 200,000 followers into a deceptive scheme, leading them to a counterfeit webpage offering the fake $MSTR airdrop. Upon interaction with the malicious links, users unwittingly granted permissions to their Web3 wallets, allowing the perpetrators to siphon tokens from their accounts.

Independent investigations by blockchain analyst ZachXBT and anti-scam platform Scam Sniffer revealed losses exceeding $440,000, with one unfortunate victim losing approximately $440,000 to the scam. The timing of the attack aligns with the activities of the perpetrators, indicating that this user likely succumbed to the MicroStrategy imposter.

⚖️ Binance's $4.3B Plea Deal Approved by Judge [Source][Source][Source]

A federal judge has endorsed Binance's $4.3 billion plea deal with the U.S. Department of Justice, marking a significant milestone in the exchange's legal proceedings.

During a sentencing hearing, Judge Richard Jones of the U.S. District Court for the Western District of Washington sanctioned the substantial fine, a key component of the settlement reached between Binance and the DOJ last November.

The agreement, arising from allegations of Binance's transgressions involving sanctions violations and anti-money laundering laws over an extensive period, mandates the exchange to remit $4.3 billion and subject itself to an independent compliance monitor. Additionally, Binance's founder, Changpeng Zhao, must resign as CEO following his separate guilty plea, with sentencing scheduled for late April.

In response, a Binance spokesperson expressed the exchange's acknowledgment of accountability through the plea deal, affirming their commitment to bolstering know-your-customer and anti-money laundering protocols to meet regulatory standards.

🛡️ Kraken Challenges SEC Lawsuit [Source][Source][Source]

Crypto exchange Kraken has filed a motion seeking the dismissal of the SEC's case lodged against it in November, denouncing the regulatory agency's purported overreach.

The motion, lodged in federal district court, contests the SEC's claims, arguing that none of the assets in question constitute "investment contracts," thereby negating Kraken's classification as a securities exchange.

Kraken's rebuttal dissects the SEC's assertions, refuting the presence of essential elements defining an "investment contract" under the Howey test. Moreover, the exchange aligns its stance with the Crypto Freedom Alliance of Texas, which has initiated a separate lawsuit challenging the SEC's expansive interpretation of regulated securities.

The exchange contends that the SEC's attempts to broaden its jurisdiction encroach upon ordinary assets and commodities, advocating for the allocation of regulatory authority through legislative channels.

💼 FTX Resolves Dispute, Sells European Arm for $33M [Source][Source]

Bankrupt exchange FTX has reached a resolution in a protracted dispute over its European division, opting to divest FTX Europe back to its original owners for $32.7 million.

The settlement, facilitated after encountering challenges in securing alternative buyers, returns control of the Swiss startup Digital Assets AG, rebranded as FTX Europe, to its founders.

FTX's decision to sell follows prior attempts to recoup funds spent on the acquisition, with the exchange alleging the misappropriation of customer funds to finance the purchase. Despite the legal tussle, FTX is nearing the conclusion of its bankruptcy proceedings, intending to repay billions to creditors and regain financial stability.

💡 Feature of the Day: 

⚡ Texas Blockchain Council and Riot Secure Legal Victory [Source][Source]

The Texas Blockchain Council (TBC) and Riot Platforms have secured a favorable ruling from a U.S. District judge in a lawsuit against several U.S. energy officials, restraining further intrusive data collection from cryptocurrency miners.

The court's decision enforces a temporary restraining order against the Energy Information Administration (EIA), shielding crypto miners from compelled survey responses and preventing the dissemination of collected data.

The TBC and Riot asserted irreparable harm resulting from compliance costs, legal repercussions, and divulgence of proprietary information. The court concurred with their arguments, indicating a likelihood of success in the lawsuit and criticizing the EIA's misuse of emergency provisions to mandate the survey. The restraining order, effective until before March 25, aims to preserve the status quo amid ongoing legal proceedings.

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📜 Your Daily Thread:

😂 Crypto Meme of the Day: 

And that’s it for this today.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com