Crypto News This Week: Gemini Refunds, Trump and Silk Road, Do Kwon’s Settlement

This week’s crypto news roundup highlights the newest developments and trends in the cryptocurrency market.

Gemini, the cryptocurrency exchange founded by the Winklevoss twins, will distribute over $2 billion worth of digital assets to its Earn users after a prolonged effort to recover funds that had been locked following the collapse of their partner, Genesis Global Capital.

The funds will be distributed in kind, meaning Gemini Earn customers who lent one Bitcoin will receive one back. The distributions also represent a 232% recovery from when withdrawals were halted in November 2022.

In other news, BlackRock’s spot Bitcoin exchange-traded fund (ETF) has become the largest product of its kind, flipping Grayscale’s GBTC after a $102 million inflow on May 28.

Gemini to Refund Investors

Gemini has announced the full recovery of digital assets for its Earn program users. The recovery plan includes a $1.1 billion settlement. It ensures that users will receive the entirety of their assets, potentially exceeding the initial value due to asset appreciation during the holding period.

Gemini Earn Users Receive $2.18 Billion of Their Digital Assets in Kind — a 232% Recovery (Gemini)

BlackRock’s Spot Bitcoin ETF Takes the Lead

BlackRock has overtaken Grayscale as the largest spot Bitcoin ETF provider with its iShares Bitcoin Trust. The transition comes as BlackRock’s ETF saw significant institutional interest, including participation from Wall Street banks and other large financial entities.

BlackRock Bitcoin ETF Flipped GBTC in Less Than 100 Trading Days (Decrypt)

Mt. Gox Moves $7B in Bitcoin

Mt. Gox, the defunct cryptocurrency exchange, has moved $7 billion worth of Bitcoin as part of its repayment plans to creditors. The transfer, which involved approximately 107,000 BTC, sparked a notable price decline in the cryptocurrency market amid fears of an upcoming sell-off. However, the platform denied rumors of making repayments to creditors.

Mt. Gox Denies Repayment Rumors as Bitcoin Movements Spook Market (Techopedia)

Do Kwon Agrees to Settle Fraud Case With SEC

Terraform Labs and its co-founder Do Kwon have agreed in principle to settle a fraud case brought against them by the U.S. Securities and Exchange Commission (SEC).

The SEC accused them of misleading investors regarding the stability and use of their TerraUSD stablecoin, which led to significant financial losses when the stablecoin collapsed.

Terraform Labs, Do Kwon agree to settle SEC civil fraud case (Reuters)

PayPal Introduces Confidential Transfers on Solana

PayPal has introduced “confidential transfers” for its PYUSD stablecoin on the Solana blockchain. The feature allows transaction amounts to be concealed from public view, offering enhanced privacy for users. Previously available only on Ethereum, PYUSD’s move to Solana leverages the blockchain’s speed and native support for confidential transactions.

PayPal’s PYUSD Stablecoin on Solana Introduces ‘Confidential Transfers’ for Enhanced Privacy (Cryptonews.com)

Singapore’s Largest Bank is an ETH Whale

Singapore’s largest bank, DBS Bank, has been identified as an Ethereum whale, holding nearly $650 million worth of Ethereum. The revelation comes as DBS expands its digital asset offerings and strengthens its position in the crypto ecosystem.

Singapore’s DBS Bank holding $650M Ether? Nansen flags whale holdings (Cointelegraph)

Hong Kong’s SEC to Inspect Crypto Companies

Hong Kong’s Securities and Futures Commission (SFC) plans to inspect the offices of cryptocurrency platforms as a crucial compliance deadline approaches. By June 1, 2024, all Hong Kong crypto platforms must be licensed or “deemed-to-be-licensed.” The SFC will conduct on-site inspections to ensure compliance with the new regulatory framework.

Hong Kong SFC to conduct compliance checks on crypto firms (Crypto Briefing)

Donald Trump Vows to Pardon Silk Road Founder

Former President Donald Trump has pledged to pardon Ross Ulbricht, the creator of the Silk Road darknet marketplace, if he is re-elected in 2024. Ulbricht, who has been serving a double life sentence plus 40 years since 2015, was convicted for his role in running the Silk Road, which facilitated illegal drug sales and other criminal activities.

Trump pledges to commute the sentence of Silk Road founder Ross Ulbricht if elected (Politico)

Ripple Donates $25M to Crypto PAC

Ripple has donated $25 million to the crypto-focused Super PAC FairShake, which has raised a total of $78 million. FairShake aims to influence the upcoming U.S. presidential election by backing leaders who endorse pro-crypto policies.

Ripple Donates Another $25 Million to Crypto Super PAC Fairshake (Wall Street Journal)

Crypto Hacks Led to Loss of Nearly $500M in 2024

In 2024, cryptocurrency hacks and rug pulls led to approximately $473 million in losses, a report by Immunefi states. These incidents include a range of fraudulent activities where developers abandon projects and steal investors’ funds, often after raising substantial amounts through token sales.

Crypto Hacks, Rug Pulls Led to $473M Worth of Losses in 2024: Immunefi (CoinDesk)

Senator Warren Addressed Use of Crypto in Fentanyl Trade

U.S. Senator Elizabeth Warren is seeking detailed information from drug enforcement agencies on how they are addressing the use of cryptocurrencies in the fentanyl trade. Warren’s inquiry follows new research indicating that cryptocurrencies like Bitcoin and Tether are increasingly used in transactions related to the illegal drug trade, particularly with fentanyl.

Sen. Warren Wants to Know How Drug Agencies Are Pursuing Crypto Ties to Fentanyl (Yahoo Finance)