Good Morning Crypto Enthusiasts!

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

1. Binance's CZ Jail Term Starts: Changpeng Zhao (CZ), founder of Binance, has begun his four-month sentence at a low-security federal prison in California. Despite his incarceration, CZ has received significant support from the crypto community, who view his decision to plead guilty as a move to protect Binance.

2. Matter Labs Drops ZK Trademark Application: Matter Labs, the team behind zkSync, withdrew its attempt to trademark the term "ZK" after backlash from the crypto community.

3. GameStop Rallies Overnight: GameStop's (GME) stock surged after Keith Gill, known as "Roaring Kitty," revealed a substantial investment in the company.

4. US Navy 'PARANOID' Blockchain: The U.S. Navy seeks private sector partners to develop its blockchain technology, PARANOID, which secures software against cyberattacks. Developed by the Naval Air Warfare Center, PARANOID verifies files across multiple nodes, creating an immutable ledger.

5. 💡Feature of the Day - Nayib Bukele Sworn in for Second Term: Nayib Bukele, El Salvador's pro-Bitcoin president, began his second term following a landslide victory. Celebrated for his pioneering stance on Bitcoin, Bukele's tenure has seen significant crime reduction and the adoption of Bitcoin as legal tender.

   
   All this and more in today’s headlines!

📰 News Highlights:

Binance's CZ Jail Term Starts [Source][Source]

Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, has started his four-month sentence at a low-security federal prison in Lompoc, California. Despite his incarceration, Zhao, commonly known as CZ, has garnered substantial support from the crypto community.

Many believe his decision to plead guilty and step down as CEO protects Binance from potential fallout similar to the FTX collapse.

Post-sentencing, CZ outlined his future plans, expressing his intent to resume his involvement in cryptocurrency after serving his time. He aims to retain his crypto holdings and focus on passive investing, reflecting his ongoing confidence in the digital asset market.

CZ views this period as a crucial phase for the crypto industry, stressing the importance of adhering to regulatory standards. His sentence, which includes a $50 million fine, is notably lighter than the three years initially recommended by federal prosecutors, following an agreement with the U.S. government to resolve a multi-year investigation into Binance.

Matter Labs Drops ZK Trademark Application [Source][Source]

Matter Labs, the team behind the Ethereum layer-2 scaling solution zkSync, has withdrawn its attempts to trademark the term "ZK" following a strong backlash from the crypto community.

The decision came three days after leading ZK researchers and industry experts criticized the firm for its "oppressive behavior," arguing that zero-knowledge (ZK) technologies should remain a public good accessible to all.

The backlash was spearheaded by a public letter from notable ZK proponents, including Shafi Goldwasser, Silvio Micali, and StarkWare CEO Eli Ben-Sasson, who argued that trademarking ZK technologies would violate the core principles of the cryptocurrency industry.

They warned that such actions would alienate Matter Labs from the community it claims to support. Initially, Matter Labs stated that their trademark applications were meant to protect their specific uses of ZK in products like "ZK Sync" and "ZK Stack," rather than claiming ownership of the technology outright.

GameStop Rallies Overnight [Source][Source][Source]

GameStop's (GME) stock experienced a significant surge after Keith Gill, famously known as "Roaring Kitty," revealed a substantial investment in the company. Posting on Reddit under his alias "DeepFuckingValue," Gill shared a screenshot showing his $181.4 million stake in GME, comprising 5 million shares and substantial call options. This disclosure led to a 19% increase in GME's price in overnight trading, with the stock hitting $27.58.

Gill, a central figure in the 2021 GME short squeeze saga, returned to Reddit on June 2 for the first time since April 2021, reigniting enthusiasm among retail investors. His previous activities during the COVID-19 pandemic significantly influenced the surge in GameStop's stock price, as Reddit traders rallied against hedge funds shorting the company.

Gill's latest post on the r/Superstonk subreddit, which has become a hub for GME speculation, included cryptic elements like a green UNO reverse card, adding to the intrigue.

US Navy 'PARANOID' Blockchain [Source][Source]

The U.S. Navy is seeking private sector partners to collaborate on further developing its proprietary blockchain technology, PARANOID (Powerful Authentication Regime Applicable to Naval Operational Flight Program Integrated Development).

Developed by the Naval Air Warfare Center's Aircraft Division in Lakehurst, New Jersey, PARANOID is designed to secure software against cyberattacks during its development and deployment phases. This blockchain-based system ensures the integrity of software by verifying files across multiple nodes, creating an immutable ledger of developer actions.

The U.S. Department of Defense’s technology transfer partner, TechLink, announced the Navy's plans to collaborate with private companies interested in enhancing software supply chain security. Nida Shaikh, a senior technology manager at TechLink, emphasized the need for partners willing to test and scale PARANOID, which could have broad applications beyond military use.

This initiative marks the Navy's first commercialization effort involving blockchain technology, building on previous agreements with entities like SIMBA Chain to secure supply lines.

💡 Feature of the Day: 

Nayib Bukele Sworn in for Second Term [Source][Source]

Nayib Bukele, El Salvador's pro-Bitcoin president, has commenced his second five-year term following a landslide victory in February. His leadership has been celebrated within the crypto community, especially due to his pioneering stance on Bitcoin.

Bukele's inauguration on June 1 was marked by praise for his efforts to transform El Salvador into a "world leader" in innovation and digital finance, with supporters lauding his achievements on social media platforms like X.

Bukele's tenure has seen significant reductions in crime, attributed to his aggressive crackdown on gangs. In his inauguration speech, he highlighted the turnaround in the country's security situation, which had been a longstanding issue.

Under Bukele's leadership, El Salvador became the first country to adopt Bitcoin as legal tender in September 2021, a move initially met with skepticism but gradually gaining acceptance and sparking global interest in cryptocurrency adoption.

😂 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