Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
The company behind the “Stoner Cats” nonfungible token (NFT) collection was charged by the U.S. Securities and Exchange Commission for conducting an unlawful securities sale. Meanwhile, Coinbase confirmed its decision to integrate layer-2 payment protocol Lightning Network as users seek faster and cheaper Bitcoin transactions, and Binance.US laid off 100 staff and its CEO Brian Shroder left the exchange.
“Stoner Cats” creator charged with unregistered securities sale
Stoner Cats 2 LLC, the company behind the “Stoner Cats” animated series, was charged by the United States Securities and Exchange Commission (SEC) for conducting an unregistered securities offering.
The alleged securities sale was tied to Stoner Cats’ nonfungible token (NFT) collection, released in mid-2021 during the height of the crypto bull market. According to the SEC, the company sold over 10,000 NFTs for roughly $800 each. The proceeds were then used to fund the series.
SEC settled its first enforcement action involving PFP NFTs. SEC alleges each uniquely generated “Stoner Cat” itself to be a “crypto asset security in the form of a non-fungible token.” Mechanics of the offering were similar to most popular PFP projects. Some of my takeaways… /1
— Mike Selig (@MikeSeligEsq) September 13, 2023
According to the SEC, Stoner Cats 2 LLC agreed to a cease-and-desist order and will pay a $1 million civil penalty. A fund will also be established to reimburse “injured investors.” The company will destroy all NFTs in its possession.
The Stoner Cats series was launched by actress Mila Kunis and had a cast of Ashton Kutcher, Chris Rock, Michael Buble, Seth MacFarlane and Vitalik Buterin.
Coinbase to integrate Bitcoin Lightning Network: CEO Brian Armstrong
Crypto exchange Coinbase has confirmed its decision to integrate layer-2 payment protocol Lightning Network as users seek faster and cheaper Bitcoin transactions.
Lighting Network (LN) was created to help solve Bitcoin’s scalability problem and to compete against newer cryptocurrency projects that promised comparatively faster and cheaper transactions.
Up until recently, major crypto exchanges, including Coinbase and Binance, had no intent to adopt the layer-2 solution as many community members argued that LN integration offered fewer incentives for exchanges’ income.
The team did a great job digging into this, and we've made the decision to integrate Lightning. Bitcoin is the most important asset in crypto and we're excited to do our part to enable faster/cheaper Bitcoin transactions. Will take some time to integrate so please be patient. https://t.co/FneeXkLI25
— Brian Armstrong ️ (@brian_armstrong) September 13, 2023
Countering the predominant narrative, Coinbase CEO Brian Armstrong confirmed the exchange’s decision to integrate Lightning Network. He added:
“Bitcoin is the most important asset in crypto and we’re excited to do our part to enable faster/cheaper Bitcoin transactions. Will take some time to integrate so please be patient.”
The decision comes a month after Viktor Bunin, a protocol specialist at Coinbase, started investigating the feasibility of LN integration. During this timeline, MicroStrategy founder Michael Saylor and Square CEO Jack Dorsey publicly questioned Armstrong’s position on LN.
Following Armstrong’s announcement, the crypto community celebrated the decision, as Coinbase’s LN integration will allow more users to witness affordable and efficient Bitcoin microtransactions.
On July 17, Binance announced the completion of Bitcoin LN integration for BTC withdrawals and deposits.
#Binance has completed the integration of Bitcoin ( #BTC ) on the Lightning Network and deposits and withdrawals are now open.
More details here https://t.co/aIofPdtAGY
— Binance (@binance) July 17, 2023
Binance users who choose to withdraw or deposit Bitcoin are now able to select “LIGHTNING” as an option. Other options include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit) and Ethereum ERC-20.
Binance.US cuts 100 staff and CEO gets out
Binance.US cut around 100 positions — a third of its staff — and its president and CEO Brian Shroder also departed the crypto exchange, a company spokesperson told Cointelegraph.
Shroder’s position was taken over by chief legal officer Norman Reedan on an interim basis with the Binance.US spokesperson adding it took the actions to give the exchange “more than seven years of financial runway.”
“The [Securities and Exchange Commission’s] aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.”
Shroder’s departure and the layoffs come as the firm was hit with a slew of regulatory action in recent months.
A lawsuit from the SEC alleged it was operating illegally and mishandled customer funds — the suit also named Binance and co-founder Changpeng “CZ” Zhao.
Binance.US, Binance and Zhao were also sued by the Commodity Futures Trading Commission alleging violations of commodities laws.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
