CDS Crypto News Weekly Roundup: Federal Reserve Challenges Mashinsky’s Dismissal, Crypto Karaoke Breach, and Other Highlights
Crypto News

Weekly Roundup: Federal Reserve Challenges Mashinsky’s Dismissal, Crypto Karaoke Breach, and Other Highlights

U.S. prosecutors firmly rejected Alex Mashinky's request to dismiss two criminal charges, as Goledo Finance and the blockchain karaoke platform Somesing fell victim to crypto thieves.

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Weekly Roundup Federal Reserve Challenges Mashinsky's Dismissal, Crypto Karaoke Breach, and Other Highlights

Crypto News- Weekly roundup: In a legal standoff, U.S. federal prosecutors have firmly rejected former Celsius CEO Alex Mashinsky’s bid to dismiss two criminal charges. Simultaneously, the cryptocurrency landscape witnessed security breaches affecting Goledo Finance and the blockchain-based karaoke platform Somesing, both falling victim to crypto thieves.

Prosecutors Stand Firm: Charges Against Former Celsius CEO Alex Mashinsky Must Stand

Federal prosecutors in the United States have rejected the motion to dismiss charges against former Celsius CEO Alex Mashinsky. The charges include commodities fraud and market manipulation. In their filing to a New York district court on Jan. 26, prosecutors argued against Mashinsky’s claims that the charges lacked legal relevance. Mashinsky had sought to dismiss the charges, citing inconsistencies and a lack of fair notice.

Weekly Roundup: Federal Reserve Challenges Mashinsky’s Dismissal, Crypto Karaoke Breach, and Other Highlights

According to prosecutors, Mashinsky misinterpreted the indictment and relevant case law in his attempt to dismiss the commodities fraud charge. They asserted that since the alleged fraud was connected to the sale of Bitcoin, it constituted commodities fraud. They further argued that there was nothing unusual about this result.

In response to Mashinsky’s fair notice argument regarding the market manipulation charge, prosecutors claimed that the challenge was premature and should await the conclusion of the trial. They contended that Mashinsky knew about and falsely denied Celsius’s undisclosed purchases of CEL tokens, indicating an understanding of the law prohibiting manipulative conduct.

Regarding Mashinsky’s request to remove mention of Celsius’s bankruptcy, prosecutors argued that the facts surrounding the bankruptcy filing are relevant to the charged crimes. Mashinsky’s trial is scheduled for September 2024.

Goledo Finance Issues Ultimatum to Attacker: Claim Bounty or Confront Law Enforcement

In another development, decentralized finance protocol Goledo Finance revealed on Jan. 27 that it had experienced a flash loan attack, resulting in a $1.7 million loss. Goledo Finance informed the attacker to contact them for a 10% bounty or face further legal action. The affected lending pool and loan interests remain temporarily frozen, and law enforcement agencies have been notified.

Somesing, a blockchain-backed karaoke platform, disclosed a hack on Jan. 27, where $11.5 million and 730 million SSX tokens were stolen. The company reported the incident to the Cyber Investigation Unit of South Korea’s National Police Agency and stated that the hack was not related to any member of the Somesing team. Crypto exchanges listing SSX have temporarily suspended deposits and withdrawals.

OpenSea Signals Openness to Acquisition Talks, Explores Potential Partnerships

Meanwhile, OpenSea, the nonfungible token (NFT) marketplace, is reportedly open to acquisitions. OpenSea’s CEO, Devin Finzer, stated that while the company is not actively seeking a buyer, they are open-minded about potential partnerships or acquisitions. OpenSea’s trading volumes have declined, and Finzer attributed Blur’s success to cutting corners in regulatory and legal approaches.

In other news, Commodity Futures Trading Commission chair Rostin Behnam expressed concern about potential misinterpretation by investors regarding the approval of spot Bitcoin exchange-traded funds. Hong Kong’s Securities and Futures Commission warned of risky staking programs associated with the Floki ecosystem, claiming up to 100% annual returns, while the Floki team defended their program’s performance.

Weekly Roundup: Federal Reserve Challenges Mashinsky's Dismissal, Crypto Karaoke Breach, and Other Highlights

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