The Unchained Web Daily #135

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Leaked Documents Show EU Wants Mass Surveillance Of Messages, Photos, and To Mandate Online Age Verification

A leaked EU Council document reveals plans for mass surveillance of private messages and mandatory age verification, with member countries' ambassadors meeting soon to pass the legislation. Critics, like German MEP Patrick Breyer, argue that the proposed law, often dubbed "chat control," raises concerns about end-to-end encryption and could compromise private communication while implementing ineffective network blocking and search engine censorship. Breyer suggests law enforcement should improve reporting of abusive material and establish EU-wide standards for prevention, support, counseling of victims, and effective criminal investigations. Age verification is seen as a way to eliminate anonymous communication. Breyer warns of a "Chinese-style surveillance state" and likens chat control to scanning all letters, potentially compromising privacy. Click here for more.

Pro-Censorship Group, Being Sued By X, Releases New Report With Complaints of Hate Speech

X, led by Elon Musk, faces renewed criticism as a report by the Center for Countering Digital Hate (CCDH) suggests that "hate speech" on the platform, formerly Twitter, remains unchecked and is proliferating despite reports. The CCDH claims to have conducted a surface-level investigation, finding 300 posts from 100 accounts containing alleged hate-fueled content, with only 41 of them removed after a week. The report also highlights major brands inadvertently running ads close to hateful posts. X disputed the claims, asserting that they took action on violative posts and that the CCDH misrepresented the posts' reach. Elon Musk has also threatened the Anti-Defamation League (ADL) with a defamation lawsuit over alleged false accusations of anti-Semitism. X's CEO, Linda Yaccarino, reiterated the company's stance against anti-Semitism and efforts to combat it. Click here for more.

UN Human Rights Chief Criticizes Elon Musk For Pushing Back Against ADL Censorship Demands

UN human rights chief Volker Turk has criticized tech mogul Elon Musk, specifically referring to Musk's platform X (formerly Twitter), for not taking a stronger stance against "hate speech." Turk expressed concern over the criticism faced by the Anti-Defamation League (ADL) for urging advertisers to pause spending on X. While not explicitly naming Musk, Turk's remarks were clearly aimed at X. Musk has accused the ADL of pushing unfounded claims that have scared away advertisers and caused financial harm. Turk called on major online platforms to take more robust action against offensive language and disinformation, emphasizing the need for transparency in hate speech policies and effective implementation, along with accessible reporting mechanisms for users. He highlighted the role of social media in spreading hatred and called for increased transparency and more effective enforcement of hate speech policies. Click here for more.

$55 Billion Drained From Crypto Market in August

In August, Bitcoin (BTC) experienced its largest monthly decline since November 2022, with a drop of over 10%, causing over $55 billion to be withdrawn from the crypto market. This volatility was primarily driven by news events. Bitfinex reported this capital outflow across Bitcoin, Ethereum (ETH), and five major stablecoins, using the Aggregate Realized Value metric to arrive at the figure. Bitcoin miners contributed significantly to the selling pressure as they exited their on-chain positions, likely due to the market price of Bitcoin nearly matching its production cost, estimated at around $24,287 per BTC by Bitfinex. The crypto market also saw event-driven volatility, such as Bitcoin's crash to $25,200 on August 17 and Grayscale's victory against the Securities and Exchange Commission (SEC) on August 29, which resulted in an 8% price increase. For more details, click here.

Japanese Startups Can Now Raise Funds With Crypto

Japan is set to allow startups to issue crypto tokens instead of stocks when seeking public funding, aiming to diversify income streams for new businesses. This initiative falls under the Limited Partnership Act for Investment, outlining the conditions for limited liability partners to sell shares to unlimited liability partners. Japan, known for having mature crypto regulations, has introduced measures to enable banks, money transfer agents, and trust companies to issue stablecoins. Yen-backed stablecoins have gained popularity, with $500 billion in transaction volume. In contrast, the US SEC has been cracking down on projects that sell tokens to raise funds without registering them as securities, with ongoing calls for regulatory clarity. Click here for more.

SEC Accuses Binance of Being ‘Uncooperative’ in Latest Court Filing

The US Securities and Exchange Commission (SEC) has expressed frustration with Binance.US, citing the exchange's lack of cooperation and concerns regarding the status of customer funds. Despite Binance.US's attempts to cooperate, the SEC claims that the exchange has not provided evidence that customer assets are held in the US or that its business is separate from the international Binance entity. Instead, the SEC alleges that Binance.US provided documents with lacking signatures and dates, denied access to key staff members for depositions, and deferred custody of customer assets to an offshore custodian. The SEC has petitioned the court to order Binance to produce responsive documents and extend the discovery period if its filing is approved. The SEC had previously filed an order against Binance.US in June, alleging inappropriate relationships and mismanagement of customer funds. Binance.US has denied these claims, stating that all customer assets are accounted for. Recently, Binance entities have seen several key figures depart, including its US CEO and Chief Strategy Officer, amid regulatory challenges. Click here for more.

Shark Tank Web3 Spin-off Ruffles Crypto Twitter Feathers, Judges Called Scammers

A web3 spin-off of the Shark Tank series titled "Killer Whales: Sink or Swim Crypto Pitches" has sparked a Twitter debate over its panel of judges, with some users labeling them as "scammers." The show, which mirrors Shark Tank and promotes crypto and web3 startups, features judges from various backgrounds, but not everyone is pleased with the star-studded lineup. Meanwhile, in other countries, web3 businesses are actively gaining a platform, such as Thailand's Kasikornbank launching a $100 million web3 and AI fund, while India has seen a decline in new startups in the sector due to funding challenges and regulatory uncertainty. Click here for more.

Lawyers Labeled Chainalysis Data Unreliable “Junk Science”

The credibility of blockchain analysis tools, particularly those offered by Chainalysis, is under scrutiny in a high-profile case involving Roman Sterlingov, the alleged operator of Bitcoin Fog, a service that obscured crypto transactions for criminal activities. Chainalysis's software was used to analyze Bitcoin Fog transactions in the case, but Sterlingov's defense has challenged the software's reliability, with attorney Tor Ekeland denouncing it as "junk science" lacking rigorous scientific standards. Ekeland argues that Chainalysis cannot provide error rates or peer-reviewed research to support its accuracy. The case has implications for the trustworthiness of blockchain analytics tools in legal proceedings and could set a precedent for their use. Click here for more.

North Korea’s Lazarus Group Has Stolen $240M in Crypto in Just 104 Days

Notorious North Korean hacking group Lazarus has reportedly increased its activity, with links to five major cryptocurrency hacks in the past three months, including the recent $54 million CoinEx hack. Blockchain surveillance firm Elliptic estimates that Lazarus has stolen nearly $240 million in cryptocurrency over the past 104 days alone. The group has been involved in laundering funds and targeting centralized platforms, with incidents also involving Stake.com, CoinsPaid, and Alphapo. CoinEx has issued an open letter to the hackers, seeking negotiation for a bug bounty and the return of the stolen funds. Click here for more.

Nouns Fork: Disgruntled NFT Holders Exit With $27 Million From Treasury

The NFT community of Ethereum collection Nouns experienced a split when over 50% of Nouns NFT holders, equivalent to 472 out of 846 NFTs, decided to fork the project. They collectively withdrew over $27 million worth of ETH from the Nouns DAO treasury and formed a new DAO organization. This move reflects a lack of confidence in the current Nouns DAO format, which has seen significant ETH expenditures on Nouns-themed projects. While Nouns has supported various initiatives to proliferate the brand, the market value of Nouns NFTs has declined significantly since its peak in late 2021 and early 2022. The fork was made possible by a Nouns protocol upgrade earlier this year, allowing NFT holders to propose a fork and reclaim a share of the treasury. The remaining Nouns DAO still has over $21.7 million in ETH, and the project is built on a Creative Commons 0 license that allows anyone to use the artwork for derivative projects. Click here for more.

Crypto Companies Aren't Banks, Hong Kong Warns Investors

The Hong Kong Monetary Authority (HKMA) has issued a warning to investors to be cautious of crypto companies that describe themselves as "banks" and offer products that resemble deposits. The HKMA emphasized that these crypto companies are not banks and may be breaching Hong Kong's Banking Ordinance with deceptive practices. Describing themselves as "crypto banks," "crypto asset banks," "digital asset banks," and "digital trading banks" can mislead the public into thinking these firms are authorized banks in Hong Kong, which could lead them to entrust their savings to these entities. The HKMA also reminded the public that crypto companies not licensed or supervised by the regulatory agency are not protected by the Hong Kong Deposit Protection Scheme. Click here for more.

Is Bitcoin Mining Really Greener? Here's What's Going On

Bloomberg Intelligence analyst Jamie Coutts suggested in a research note that over 50% of the power used by the Bitcoin mining industry comes from green energy sources. Coutts based his analysis on data indicating a decline in Bitcoin's carbon emissions since 2021, despite a rising hash rate. However, industry expert Daniel Batten argued that Coutts' claim was only "partially correct" as it fails to consider factors like increased machine efficiency. Batten explained that the decline in emissions intensity, a measure of carbon emissions per unit of electricity consumed, could result from both rising sustainable energy sources and more efficient mining rigs. Batten also pointed to other factors contributing to reduced coal-powered Bitcoin mining, such as China's mining ban and Kazakhstan's loss of miners. Click here for more.

Ethereum Blockchain Launches 'Holesky' Test Network, on First Anniversary of Historic 'Merge'

Ethereum developers launched the Holesky test network to enhance Ethereum's testing capabilities and address scalability issues. Holesky is expected to become Ethereum's largest testnet with 1.4 million validators, twice the number on the main network. By making Holesky larger, developers aim to test infrastructure and upgrades more rigorously to prevent unforeseen issues on the mainnet. The launch coincided with the one-year anniversary of Ethereum's transition to a proof-of-stake blockchain. Ethereum developers anticipate that Holesky will eventually replace the Goerli testnet, which is set to sunset in early 2024. Click here for more.

Magic Eden integrates Solana’s compressed NFTs into marketplace

Magic Eden, a nonfungible token (NFT) marketplace, is embracing Solana's compressed NFTs (cNFTs) as a cost-effective and scalable alternative to conventional digital collectibles. Unlike typical Solana NFTs, cNFTs feature compressed data stored off-chain, reducing production costs and enabling mass production across various industries, including gaming, music, events, and the metaverse. This move aims to broaden NFT adoption by making it more accessible and affordable for newcomers while mitigating the risk of financial losses. cNFTs, leveraging Solana's state compression, can mint up to 1 million NFTs for approximately $110, significantly cheaper than Ethereum's minting costs. However, hosting NFTs off-chain has its challenges, as seen in a 2022 incident involving FTX. Click here for more.

Polkadot community PolkaWorld halts operations after failed funding bid

PolkaWorld, a Polkadot community, has ceased operations after its proposal for funding from Polkadot's treasury was rejected. They expressed concerns about Polkadot's new open governance platform, OpenGov, affecting long-term contributors and suggested integrating expert evaluation from the previous governance system. Another project, Brushfam, is leaving Polkadot due to difficulties in obtaining financing and frustration with the governance system. Polkadot's OpenGov system gives tokenholders a direct say in governance decisions but has faced criticism. In a separate development, DJ 3LAU left the decentralized social media platform Friend.tech, citing regulatory risks related to its automated market maker feature, sparking discussions in the crypto community. Click here for more.

PayPal rolls out crypto ramps, Franklin Templeton joins BTC ETF race, and more

PayPal is quietly expanding its crypto services, offering new on-ramps and off-ramps for cryptocurrencies in the U.S., allowing users to convert crypto to USD directly from their wallets into their PayPal balance. Franklin Templeton, a traditional asset manager, filed for a spot Bitcoin ETF in the U.S., following other major firms seeking approval for Bitcoin investment products. Coinbase plans to integrate the Bitcoin Lightning Network, aiming to provide faster and cheaper Bitcoin transactions. Meta is developing a powerful AI model to compete with OpenAI's systems, while also investing in data centers and semiconductor chips for AI development. These developments highlight the growing mainstream acceptance of crypto despite market fluctuations. Click here for more.

ABN Amro issues 5M euro digital green bond through Polygon-powered Tokeny

ABN Amro, the Dutch bank, conducted a digital green bond offering using Polygon's layer-2 Ethereum scaling technology to raise €5 million ($5.3 million). The green bond, issued as an ERC-3643 token through Tokeny's infrastructure platform on Polygon, secured funding for real estate investor Vesteda, which plans to refinance "green assets." Green bonds aim to raise funds for environmentally sustainable projects or companies. DekaBank took ownership of the tokens representing its €5 million investment after payment was made. ABN Amro is exploring multiple digital bond offerings and used the ERC-3643 standard to embed compliance rules into digital bonds, allowing them to interact seamlessly with other applications on the public network. Mainstream financial institutions are increasingly turning to blockchain for digital bond issuance and management, including Siemens and the European Investment Bank. Click here for more.

Binance.US not cooperating with investigation, US SEC says in filing

The United States Securities and Exchange Commission (SEC) has accused Binance.US of non-cooperation in an ongoing investigation, citing inadequate document production, refusal to produce essential witnesses, and concerns about the use of Ceffu wallet custody software. This follows the SEC's June lawsuit against Binance for various charges related to unregistered securities offerings and regulatory violations. These developments occur amidst an internal crisis at Binance.US, including the departure of top executives. Click here for more.

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Brought to you by Alexandros Dolgov CBA? (Study/Bitcoin)