Tether, the stablecoin with nearly $100 billion in circulation, has reported record profits of $6.2 billion in 2023. However, this success is raising concerns among traditional financial players, with JPMorgan analysts criticizing Tether for its lack of regulatory compliance and transparency, and its potential threat to the crypto sector due to its market dominance.
In other news, Google has updated its advertising policy to allow ads featuring certain cryptocurrency financial products, such as “cryptocurrency coin trusts”. This change has already been taken advantage of by companies like Vaneck and Blackrock, who are now advertising on Google.
There have also been reports of a major hack, with hackers stealing $112 million in XRP from Ripple co-founder Chris Larsen’s personal wallet. The stolen funds were laundered through various platforms, raising questions about the possible connection to Ripple.
Former UK Chancellor of the Exchequer, George Osborne, has joined Coinbase as a global advisor, highlighting the growing influence of former policymakers in the crypto industry. Meanwhile, German authorities have seized a record-breaking 2 billion euros worth of bitcoin in connection to a piracy website, and London Metropolitan Police have seized over 1.4 billion British pounds worth of Bitcoin in a money laundering case.
FTX has abandoned plans to relaunch and is now focusing on liquidating $7 billion in assets to repay customers. On the other hand, US Bitcoin mining operations have surged, consuming as much electricity as the entire state of Utah.
Lastly, a Chainalysis report has highlighted the high failure rate of illicit pump-and-dump schemes on the Ethereum DEX ecosystem. While malicious entities gained $240 million through these schemes, the average profit per token was just $2,600, constituting only 1% of the annual Ethereum DEX trading volume.
This week in crypto has been eventful, with a mix of record profits, hacks, regulatory changes, and industry developments. Stay tuned for more updates in the world of cryptocurrency.
