Arbitrum Foundation halts 700m ARB self-allocation, three VIP firms named in Binance lawsuit

Arbitrum Foundation halts 700m ARB allocation following vote snafu

The Arbitrum Foundation, which oversees the development of the Arbitrum layer 2 scaling solution, has offered concessions to ARB token holders following complaints about governance issues.

The foundation announced via Discord on Wednesday that it would not move any funds until the wider community approved a new budget.

The move comes after ARB holders raised concerns about centralisation and lack of transparency within the foundation following a contentious decision over the weekend to award 700 million ARB tokens to the foundation.

The Arbitrum layer 2 solution has gained popularity in recent months as a way to alleviate network congestion on the Ethereum blockchain.

NOW READ: Arbitrum DeFi protocol Sentiment loses $1m to a hacker, sets 10% recovery bounty

SBF loses phone, laptop and video games in new bail conditions

Former FTX CEO Sam Bankman-Fried will soon be “under an electric microscope,” according to one law professor, as his bail conditions take effect next week.

The disgraced crypto personality will give up his smartphone and computers for heavily restricted models which only connect to the internet to access a small list of court-approved websites.

Additionally, the FTX founder — currently facing a host of charges related to the multi-billion dollar collapse of FTX in November — will be barred from playing video games with online components or voice chats.

NOW READ: Indexed Finance hacker now says he’s a whitehat

NYDFS superintendent denies existence of Choke Point 2.0

New York Department of Financial Services superintendent Adrienne Harris denied accusations Signature Bank’s March takeover was part of an effort to attack crypto, calling the notion “ludicrous.”

‘The idea that we don’t want those banks to exist just doesn’t make any logical sense’

“If you look at our rules, if you look at our guidance, they necessitate our virtual asset companies having a strong banking partnership with well-regulated banks,” Harris said. “So the idea that we don’t want those banks to exist just doesn’t make any logical sense.”

Speaking at a conference Monday, Harris insisted there is no Choke Point 2.0, a popular term for what some perceive to be concerted, coordinated effort by the US government to stifle the digital asset space by limiting its access to banks.

NOW READ: Litigator who challenged Operation Choke Point rallies crypto to fight ‘illegal’ regulatory crackdown

Dubai regulator imposes tighter application rules, grills Binance

Dubai’s crypto regulator, the Virtual Assets Regulatory Authority, has asked Binance and other digital asset licence applicants to provide additional information as part of their application process.

The Dubai Financial Services Authority requested further details on Binance’s ownership structure, and sought to clarify its legal status and provide additional information on its risk management practices.

The moves are part of a wider effort within the United Arab Emirates to address its placement on the Financial Action Task Force’s ‘grey list’ which designates it a hotspot for illicit financial activity.

The news follows the US Commodity Futures Trading Commission filing a lawsuit against Binance in March, accusing the exchange of running an illegal derivatives trading business.

NOW READ: CZ revamped Binance lobbying operations in the run-up to the CFTC suit

Three VIP firms named in Binance lawsuit

Jane Street, Tower Research Capital, and Radix Trading have been named as the US counterparties involved in Binance’s trading activities, according to a recent court filing.

The filing was made as part of a lawsuit filed March 27 by the CFTC against Binance.

The CFTC has accused Binance of facilitating trading by US customers without proper registration, among other regulatory violations.

NOW READ: Binance’s CFTC suit a sign ‘other regulators follow’ in crackdown on crypto giants

Microstrategy adds to 1,045 BTC to its Bitcoin stack

Business intelligence firm MicroStrategy purchased 1,045 Bitcoin for approximately $23.9 million between March 23 and April 4, according to a recent US Securities and Exchange Commission filing.

This brings the company’s total Bitcoin holdings to over 124,000, worth approximately $5.6 billion at current prices.

MicroStrategy has been a prominent buyer of Bitcoin, with CEO Michael Saylor frequently touting the digital asset as a long-term store of value.

ERC-20 inventor pushes for ‘creative’-oriented layer one blockchain

Fabian Vogelsteller, the inventor of the ERC-20 token standard used by Ethereum and other blockchains, recently discussed his upcoming layer one platform called LUKSO.

Vogelstellar stated he designed the platform primarily to support creative applications such as fashion, gaming, and art.

He added that intends to make ease-of-use a primary component of the chain.

Examples of layer 1 blockchains include Bitcoin and Ethereum, but Vogelstellar aims for LUKSO to be the first blockchain catered specifically to creatives and their work.

More web3 news from around the web…

Decentraland Metaverse Fashion Week attendance plummets 76% amid ‘worrisome’ trading volume — The Block

Regulator turf war heats up ahead of Ethereum Shanghai upgrade — Bloomberg

Dogecoin rally built on little more than narrative, expect short-term volatility, analysts say — The Block