OneCoin’s ponzi founder learns his fate; Coinbase, Telegram, and MetaMask all introduce new features and a Bitcoin miner returns a $500,000 transaction fee. These stories and more, this week in crypto.
$4 Billion Ponzi Founder Gets 20 Years
The co-founder of the $4 billion OneCoin Ponzi scheme, Karl Sebastian Greenwood, was sentenced to 20 years in prison for his role in one of crypto’s largest frauds. Greenwood admitted guilt for creating a fraudulent cryptocurrency with his business partner, Ruja Ignatova, known as the ‘Cryptoqueen.’ The Judge highlighted OneCoin’s lack of blockchain, real token, or trading market, labeling it ‘a classic scam’.
TON Endorsed by Telegram
The TON token rose by 6% in just 30 minutes after global messaging service Telegram endorsed the TON network as its preferred Web3 infrastructure blockchain. The TON crypto wallet, which is already available as a Telegram bot, will soon be integrated into the app for all 800 million users, granting the network exclusive promotion in the interface.
Big News for Coinbase and Lightning
Coinbase announced it will begin supporting the Lightning Network, Bitcoin’s layer 2 solution which significantly boosts its scalability and practicality for everyday payments. The integration will dramatically increase transaction speed and lower fees for transactions to and from the platform. Coinbase began reviewing Lightning support in August, and when CEO Brian Armstrong announced the confirmation of the launch, he also lauded Bitcoin as “the most important asset in crypto.”
MetaMask Wallet gets New Features
Consensys, creator of the popular crypto wallet Metamask, is releasing a new feature called MetaMask Snaps. The new feature will allow users to choose from a wider variety of apps developed by third parties. MetaMask also started allowing users to convert crypto to major fiat currencies just last week, as users in the U.S., U.K, and EU can now sell their Ether directly.
The FTX Fallout Continues
Genesis, a crypto-trading firm hit by the FTX crypto collapse last year, has stopped all trading operations. After announcing the closure of its US desk last week, the company now confirms it’s closing international trading as well. A company statement calls the move a voluntary business decision, stating that Genesis no longer offers trading services through any of its business entities.
What’s Backing PayPal’s Stablecoin?
PayPal’s stablecoin partner, Paxos released a transparency report on PYUSD’s reserves. According to the report, the dollar pegged token is backed by $43 million in Treasury notes, and $1.5 million in cash reserves. Paxos emphasizes the safety of overcollateralization, minimizing the risk of loss while highlighting collaborations with other banks, such as BMO Harris, Customers Bank, and State Street.
FTX Allowed to Sell its Digital Assets
Bankrupt exchange, FTX got the green light to sell its $3.4 billion in digital assets, including $1 billion in Solana, $560 million in Bitcoin, and hundreds of millions more in other various altcoins. Bitgo currently manages the assets, and while no direct open-market sales are planned, some firms have already expressed interest in buying the assets publicly.
Bitcoin Miner Returns $500k Mining Fee
The Bitcoin community spotted a BTC transaction that paid a $500,000 transaction fee to move only around $2,000, while the average network fee at the time was only around 2 bucks. The miner who received the fees publicly offered to refund the error. It took a couple of days for Paxos to announce that they made the mistake through their servers. Blockchain data confirms the return of the funds.