Good Morning Crypto Enthusiasts!

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

1. TON Network Outage: The Telegram Open Network (TON) experienced a significant outage on August 28, halting block production for over three hours due to a surge in transactions related to the newly launched DOGS memecoin.

2. Ondo Finance's USDY On Arbitrum: Ondo Finance has expanded its USDY yield token to the Arbitrum network, marking a significant step in the adoption of tokenized treasury products across blockchain networks.

3. Celsius Repays Creditors: Bankrupt crypto lender Celsius has distributed approximately $2.5 billion to 251,000 creditors as part of its ongoing bankruptcy proceedings.

4. TON Society's Demand: The TON Society, representing the Telegram Open Network (TON) community, has issued an open letter to French authorities demanding the release of Telegram co-founder Pavel Durov, who was arrested in France on August 24.

5. 💡Feature of the Day - Binance Under Fire: Binance is facing scrutiny following reports that the exchange seized cryptocurrency funds from Palestinian users at the request of the Israel Defense Forces (IDF).

   
   All this and more in today’s headlines!

📰 News Highlights:

TON Network Outage [Source][Source][Source][Source]

The Telegram Open Network (TON) experienced a significant outage, halting the production of new blocks for over three hours on August 28. The disruption was attributed to a surge in transactions related to a newly launched memecoin, DOGS, which overwhelmed the network.

According to a TON Foundation member, the overload caused validators to lose consensus, necessitating a network restart scheduled for 4:00 UTC.

The DOGS memecoin, launched on August 27, rapidly gained traction, with trading volumes reaching $1.7 billion within the first ten hours and a peak market cap of $891 million.

Despite the excitement, the memecoin's price has since dropped from its initial peak. Meanwhile, ByBit has suspended all TON deposits and withdrawals due to the network's instability.

Ondo Finance's USDY On Arbitrum [Source][Source]

Ondo Finance, a real-world asset protocol, has extended its USDY yield token to the Arbitrum network, an Ethereum layer-2 scaling solution. This move, announced on August 27, marks another step in the growing adoption of tokenized treasury products across blockchain networks.

The USDY token, backed by bank deposits and short-term treasury bills, offers users up to 5.35% annual returns on stablecoins like USD Coin.

With $364 million in total value locked, USDY is now available on eight blockchain networks, including Ethereum and Solana.

The expansion to Arbitrum aligns with the network's increasing momentum in tokenized real-world assets (RWAs).

Tokenized treasury products, such as Ondo's offerings, have seen a 150% increase in market capitalization this year, and are projected to reach $3 billion by the end of 2024.

Celsius Repays Creditors [Source]

In a significant milestone, bankrupt crypto lender Celsius has distributed approximately $2.5 billion to 251,000 creditors, representing 84% of the $3 billion owed.

This development, disclosed in an August 26 court filing, comes as part of Celsius's ongoing bankruptcy proceedings, which have been closely watched by the crypto industry.

Despite this progress, over 121,000 creditors have yet to claim their funds. Many of these creditors are owed relatively small amounts, with 64,000 being owed less than $100.

The bankruptcy administrator has indicated that attempts to distribute these remaining funds will continue, with Coinbase being used for bi-weekly distribution efforts.

TON Society's Demand [Source][Source][Source][Source][Source]

The TON Society, an independent group representing the Telegram Open Network (TON) community, has issued an open letter to French authorities, demanding the immediate release of Telegram co-founder Pavel Durov.

Durov was arrested at Le Bourget Airport on August 24, sparking widespread outrage among tech executives and free speech advocates.

In the letter, the TON Society condemned Durov's arrest as a violation of fundamental human rights, calling it a direct assault on free speech.

The group has called on international bodies, including the United Nations and the European Union, to intervene on Durov's behalf.

French authorities have extended Durov's detention as part of an ongoing investigation into alleged misuse of the Telegram platform.

Despite assurances from French President Emmanuel Macron that the arrest is not politically motivated, the move has been met with backlash from the crypto and tech communities.

💡 Feature of the Day: 

Binance Under Fire [Source][Source][Source]

Binance is facing scrutiny after reports emerged that the exchange seized cryptocurrency funds from Palestinian users at the request of the Israel Defense Forces (IDF).

The allegations were brought to light by Ray Youssef, CEO of the peer-to-peer crypto platform Paxful, who claimed that Binance had confiscated funds from all Palestinians, citing a letter from Israeli authorities.

According to Youssef, the letter referenced Israel's anti-terrorism laws, which allow the seizure of assets associated with declared terrorist organizations, including cryptocurrencies.

Binance has since responded, clarifying that only a small number of accounts linked to illicit activities were affected.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com