💰 Amazon to launch NFT marketplace

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We're already half way through the week, and developments in the world of Crypto continue to come at rapid speed. FTX.com trading affiliate Alameda, which previously filed for bankruptcy, has started legal proceedings against Digital Currency Group (DCG) and Grayscale, alleging breaches of trust agreements and fiduciary duties. Meanwhile, rumors abound that Amazon is gearing up to launch its own non-fungible token (NFT) marketplace in April.

In other news, despite facing regulatory challenges and recent enforcement actions, Kraken, a major cryptocurrency exchange, is moving forward with plans to launch its own bank. And at another exchange, a Coinbase user named Jared Ferguson has filed a lawsuit against the US's largest cryptocurrency exchange, claiming that he lost $96,000 in a phone hack.

Markets

Powell warns of crypto risks, but doesn't want innovation stifled (2 minute read)During a Senate Committee on Banking, Housing, and Urban Affairs hearing, Chairman Jerome Powell caused stocks to decline with his opening statement, which suggested that the Federal Reserve could accelerate and enhance upcoming interest rate hikes. He also addressed crypto and highlighted several risks associated with digital assets, including fraud, lack of transparency, and the possibility of runs. Powell advised regulated U.S. financial institutions to be cautious and exercise "great care" when engaging with the cryptocurrency sector. The Federal Reserve's stance emphasizes the importance of responsible practices and risk management in the use of digital assets.

Yuga Labs’ first Bitcoin NFT auction nets $16.5M in 24 hours (3 minute read)Yuga Labs recently concluded the auction for its first-ever Bitcoin Ordinal non-fungible token (NFT) collection, called "TwelveFold," which lasted only 24 hours and raised a whopping $16.5 million. A total of 288 bidders were successful in acquiring one of the Bitcoin NFTs from the collection. The company has assured that the winners will receive their unique inscriptions within a week, whereas the unsuccessful bidders will receive a refund of their bid amount within 24 hours.

FTX’s Alameda sues Grayscale over crypto trusts (2 minute read)FTX.com trading affiliate Alameda, which filed for bankruptcy, has initiated legal proceedings against Digital Currency Group (DCG) and its asset management firm Grayscale. In a press release issued on Monday, FTX stated that Alameda has filed a lawsuit against DCG over the structure of its cryptocurrency trusts. According to John J. Ray III, the Chief Restructuring Officer of FTX and its affiliates, the company aims to use every available tool to maximize recoveries for FTX customers and creditors.

Tech

Amazon Is Poised to Dip Its Giant Toes Into NFTs (2 minute read)Amazon is allegedly preparing to launch its own non-fungible token (NFT) marketplace, expected to be named "Amazon NFT Marketplace" or "Amazon Digital Marketplace," which may become available to customers in April. The existence of the NFT marketplace was initially revealed in January by Blockworks, but there were few details at that time. Later that month, Web3 design company Ava Labs announced its partnership with Amazon on Twitter, adding to speculation about the upcoming marketplace. Although there has been no official statement from Amazon, The Big Whale has reported that the NFT marketplace may be unveiled on April 24.

What Is a Sovereign Rollup? Rollkit Pitches Second Layer for Bitcoin (3 minute read)Developers are looking to integrate rollups, a modern technology, into the traditional blockchain system of Bitcoin. Rollkit, a modular framework for rollups, recently announced on Twitter that it has achieved a research integration that enables "sovereign rollups" on Bitcoin. This new rollup solution allows users to create rollups by retrieving and storing data on the Bitcoin blockchain. The idea for this innovation was inspired by Ordinals, the Bitcoin NFT protocol, which demonstrated that with Taproot, users can post arbitrary data to the blockchain. This development comes just a few months after the first NFT was inscribed into Bitcoin, highlighting the continuous evolution of the Bitcoin network.

Kraken is on track to launch bank 'very soon' despite regulatory 'weird place' (3 minute read)Kraken, a major cryptocurrency exchange, is pushing forward with its plans to launch its own bank, despite facing regulatory challenges and recent enforcement actions. The exchange had to shut down its on-chain staking services for US clients to settle charges from the US Securities and Exchange Commission, which accused it of violating securities laws. Kraken's Chief Legal Officer, Marco Santori, confirmed on The Block's podcast, The Scoop, that the Kraken Bank is still on track to launch soon. Launching a bank in the crypto sector comes at a time of uncertainty and regulatory upheaval for the industry, with several enforcement actions and increasing uncertainty on the regulatory front, following the fallout from the collapse of FTX.

Misc

Coinbase customer who lost $96,000 in a crypto hack has sued the exchange after getting the brush-off (2 minute read)A Coinbase user, Jared Ferguson from New York, has filed a lawsuit against the US's largest cryptocurrency exchange, alleging that he lost $96,000 in a phone hack, and the company refused to take responsibility. In the complaint filed on Monday, Ferguson claimed that 90% of his life savings were wiped out from his account on Coinbase in a security breach that occurred through his mobile phone. Hackers were able to gain control of his phone number by tricking his mobile service provider, and within eight hours, they drained his crypto from the Coinbase platform. However, the exchange denied any reimbursement to Ferguson, stating in an email that customers are responsible for any fraudulent activity that occurs when devices or passwords are compromised.

Curve Ball - Arthur Hayes (25 minute read)Arthur Hayes is a former CEO of BitMEX, a cryptocurrency exchange known for its leverage trading. He gained notoriety in the crypto community for his sharp wit and blunt opinions, often shared in his infamous Medium posts. These posts cover a range of topics related to cryptocurrency, from market analysis to regulatory issues, and are widely read and discussed by industry insiders and enthusiasts alike. Curve Ball is Haye's latest blog post, and as always, is a thought provoking read.

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