Binance admits mixing client funds with reserves, Robinhood’s Twitter account gets hacked and the first nuclear-powered Bitcoin mining rigs are closer than you might think. These stories and more this week in crypto.
Binance Admits Commingling Clients’ Funds
Binance has admitted to mixing client funds with reserve crypto assets meaning there was no segregation between client assets and its collateral accounts. A spokesperson for Binance said the funds were mixed in error and maintained that its clients’ assets were backed by enough collateral to meet any redemptions.
Robinhood’s Twitter Account Hacked
An unknown hacker managed to get control of Robinhood’s official Twitter account and published a now-deleted tweet advertising $RBH, Robinhood’s purportedly newly minted token. But the company does not have a native cryptocurrency and has never minted a token itself. Instead, investors can ride the fortunes of the platform by investing in its NASDAQ-listed stock HOOD.
White House Urges for Crypto Regulation
The White House has published a statement urging Congress to step up its efforts to regulate the cryptocurrency market with a wish list of actions the administration would like to see taken. The letter discourages Congress from giving a green light to mainstream institutions like pension funds to dive headlong into cryptocurrency markets, warning that it deepens ties between cryptocurrencies and the broader financial system.
Major Banks Plan a Digital Wallet
Wells Fargo, Bank of America and JP Morgan, in partnership with credit card companies Visa and Mastercard, are close to debuting a digital wallet to compete with PayPal and Apple Pay. The yet-to-be-named digital wallet would be managed by Early Warning Services, the same company that handles the money-wiring platform, Zelle. The wallet is set to be released later this year.
BlockFi Reveals $1.2Bn Assets in FTX
Bankrupt crypto lender BlockFi had over $1.2 billion in assets tied up with Sam Bankman-Fried’s FTX and Alameda Research. This was according to financial documents that were mistakenly uploaded to court filings without the redactions. The mistake showed that BlockFi’s exposure to FTX was greater than previously disclosed.
U.K. Man Sent to Jail Over Crypto Theft
A man was sentenced to four years and six months in jail after pleading guilty to stealing cryptocurrency worth more than 2 million British pounds. The 40-year old Dutch native living in England had set up a website under a false name on which he generated an 81-character code that he used to steal IOTA tokens from users around the world.
Bitcoin Appears on Iconic Berlin TV Tower
A Bitcoin logo was projected across the Berlin TV Tower in Germany. The individual behind the initiative has yet to be identified, but a prime suspect named Tilo Neumann promoted the display live on his Twitter profile. The TV Tower is a major tourist attraction and one of the tallest structures in Europe.
World’s First Nuclear-powered Bitcoin Mining Rig
The search for the cheapest, cleanest energy to mine Bitcoin has led to the first nuclear-powered Bitcoin mining rig, set to begin operating in the first quarter of this year. Talen Energy has completed construction of the Cumulus Susquehanna data center in Pennsylvania and will be able to mine Bitcoin with almost zero carbon emissions.
That’s what’s happened this week in crypto, see you next week.