Binance challenges the SEC and maintains that it lacks authority to regulate exchanges that facilitate cryptocurrency trading.
Cryptocurrency exchange Binance is challenging the SEC and has asked the United States District Court of Columbia to dismiss the lawsuit filed by the Securities and Exchange Commission (SEC). Despite reaching a historic settlement of more than $4 billion with the United States Department of Justice last month, the crypto exchange led by Changpeng Zhao once again finds itself at the epicenter of a legal battle.
Binance’s position is supported by its claim that the SEC lacks the legal authority necessary to regulate exchanges that facilitate the buying and selling of cryptocurrencies. In a court filing filed on December 12, the platform maintained that at the time users acquired cryptocurrencies through its platform, an investment contract did not exist. They argue that this lack is sufficient reason for the court to dismiss the case presented by the SEC.
TRM Labs Reports Drastic Reduction in Cryptocurrency Hack Losses in 2023
TRM Labs, the leading blockchain intelligence firm, reveals that losses attributed to cryptocurrency hacks in 2023 have seen an impressive drop, exceeding 50% compared to the previous year, according to its report published on December 13. This notable decline is attributed to significant improvements in the security of the crypto industry.
The report details findings from TRM Labs’ research into the driving factors behind the pronounced reduction in cyberattacks. Hacking losses on crypto projects are reported to have dropped by around $1.7 billion in 2023, significantly lower than the $4 billion stolen from internet protocols in the previous year.
According to the report, three key factors may have contributed to the decline in hack volumes in 2023. Improved industry security measures, stepped up law enforcement action and closer industry coordination are likely to have fortified the cryptocurrency ecosystem and helped reduce the damage from attacks.
Finally, the report highlights that vigilance and adaptability remain crucial as the industry and law enforcement attempt to maintain this positive trajectory into 2024.
OKX DEX Experiences $2.7 Million Cryptocurrency Exploit
Security analysts report that an OKX decentralized exchange (DEX) aggregator has been the victim of a $2.7 million exploit. Possibly due to the leak of the DEX manager’s private key.
The OKX team has confirmed the incident, noting that an outdated smart contract on their DEX was compromised. The platform has taken immediate steps to protect user funds by revoking the permissions of the affected contract. And, it is collaborating with relevant authorities to trace and reimburse the stolen funds.
Key SEC Meetings Spark Bitcoin ETF Approval Optimism
Several prominent Bitcoin exchange-traded fund (ETF) applicants have recently held crucial meetings with the U.S. Securities and Exchange Commission (SEC), raising approval expectations as details of their products are finalized.
Bloomberg ETF analyst James Seyffart reported on December 13 that four applicants have held meetings with the SEC in recent days regarding the filing of their Bitcoin products.
BlackRock, in its third meeting with federal regulators on December 12, is seeking approval for its Bitcoin spot ETF. Grayscale, Franklin Templeton and Fidelity also met with the SEC last week, contributing to growing optimism over the approval of Bitcoin ETFs.
BlackRock has adjusted its application to make it easier for large banks to participate, introducing new stakes in the fund with cash, rather than relying solely on cryptocurrencies.
By Leonardo Perez
