Daily Digest - 4th October 2022

Headlines

▌SEC Indicts Kim Kardashian for Illegally Promoting Crypto Securities, Who Agrees to Pay Fine and Cooperate With Investigation

The U.S. Securities and Exchange Commission (SEC) announced that it was indicting Kim Kardashian for peddling Ethereum Max crypto securities on social media, but did not disclose the details of the promotion fees she received. Kim Kardashian said she agreed to settle and pay $1.26 million (including $260,000 in advertising fees and a $1 million fine) and would actively cooperate with the SEC's ongoing investigation. SEC Chairman Gary Gensler said Ms Kardashian's case also serves as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they are paid to promote securities investments.

Policies

▌Prime Minister of Japan: Will Vigorously Promote the Use of Web3 Services Such as Metaverse and NFT

Japanese Prime Minister Fumio Kishida gave a policy speech at an interim parliamentary session, in which he mentioned that he would vigorously promote the use of Web3 services such as the Metaverse and NFT; one of the goals of digital transformation investment. In addition, according to Itmedia reports, Japan's newly established government agency "Digital Agency" announced on September 30 that it will hold a "Web3 Research Conference". According to the policy of the "Priority Plan for Realizing a Digital Society" decided by the Japanese Cabinet in June, it will consider promoting Web3 related technologies such as NFT. The schedule and agenda for the event have not yet been announced.

Cryptocurrency

▌Tether Cuts Commercial Paper Holdings to Below $50M

Tether Chief Technology Officer Paolo Ardoino tweeted that Tether has cut its commercial paper holding to less than $50 million. As of September 30, the stablecoin issuer increased its holding of U.S. Treasury bonds to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30. Prior to the news in June, Paolo Ardoino had earlier said that he will bring its commercial paper holdings to zero by the end of the year on the back of growing concerns over the stability of its ecosystem and its stablecoin USDT.

▌Nomics: More Than 12,000 Crypto Coins Become Zombies in Market Slump

Nomics compiled an analysis of coin activity for Bloomberg and discovered that more than 12,100 tokens have become “zombies” this year, defined as tokens that have not been traded for a month. That’s more than twice as many as in all prior years combined, the researcher found. These cryptocurrencies have no "effectiveness" this year. The researcher also found that a total of 136 cryptocurrencies turned into zombies in 2018, while 766 coins earned that designation in 2019, far below this year’s level.

▌Pro-Russian Groups Are Raising Funds in Crypto

Pro-Russian groups are using the messaging app Telegram to raise funds in cryptocurrencies to prop up paramilitary operations and evade U.S. sanctions. The funds are used to provide supplies to Russian-affiliated militias and support combat training at locations close to the border with Ukraine. Frontier locations for combat training. These fundraising groups have raised $400,000 in cryptocurrencies, according to digital asset compliance and risk management firm TRM Labs, one of which TRM Labs identified as a Russian task force.