Please, Mr. President, It Was Only $8 Billion! 🐽
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Thanks for being part of the Unchained community!
Happy Friday again! I’m Juan Aranovich, managing editor of Unchained.
In today’s edition:
🚨 SBF’s parents push for pardon
🏆 Bitcoin-Ethereum ETF gets SEC’s nod
⚡ USDT goes live on Bitcoin and Lightning
💰 Kraken brings back staking after two years
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What’s Poppin’?
By Tikta
SBF’s Parents Seek Trump Pardon for Son
FTX founder Sam Bankman-Fried's parents, Joseph Bankman and Barbara Fried, are reportedly pursuing a presidential pardon for their son.
Bankman-Fried’s parents plan to appeal to President Donald Trump following the sentencing of their son to 25 years in prison last year for an $8 billion fraud related to the collapse of the FTX crypto exchange.
The pair are said to have consulted with lawyers on the matter, but it is currently unclear whether they have made any direct outreach to the White House.
Trump granted a full pardon to Silk Road founder Ross Ulbricht a day after he took office. Ulbricht had garnered significant support from both the crypto community and beyond, but the former FTX chief does not enjoy a similar level of backing.
Bitwise Dual Bitcoin/Ethereum ETF Gets SEC Nod
A dual Bitcoin and Ethereum exchange-traded fund created by crypto index fund manager Bitwise has won regulatory approval from the U.S. Securities and Exchange Commission, allowing it to be listed and traded on NYSE Arca.
The approval was granted on an “accelerated basis” — a sign that times are changing at the commission.
Although the SEC has approved the ETF's listing, it still requires clearance for its pending S-1 registration before trading can officially commence.
The ETF will hold both spot Bitcoin and Ethereum, alongside cash reserves, giving investors combined exposure to the two biggest cryptocurrencies.
USDT Integrates With Bitcoin and Lightning Network
Tether-issued stablecoin USDT has been integrated into both the Bitcoin base layer and the Lightning Network, a layer 2 payment protocol built on top of the blockchain.
The integration was made possible through the Taproot Assets protocol developed by Lightning Labs. The protocol allows the issuance and transfer of digital assets such as USDT directly on Bitcoin's blockchain, enabling faster and cheaper transactions.
“Today marks a new era for stablecoins,” said Elizabeth Stark, CEO of Lightning Labs. “Bringing USDT to Bitcoin combines the security and decentralization of Bitcoin with the speed and scalability of Lightning.”
USDT currently has a market capitalization of around $139.4 billion, making it the world’s biggest stablecoin.
Kraken Restores Staking After Two Years
Crypto exchange Kraken has officially resumed its crypto staking services for U.S. customers after a two-year hiatus.
The relaunch comes after the exchange settled with the U.S. Securities and Exchange Commission in early 2023, agreeing to pay a $30 million fine and halt its staking operations following allegations it had offered unregistered securities.
Kraken will employ a bonded staking mechanism in which users lock up their tokens for a specific period. The staked assets will then be delegated to validators that handle transaction validation and block production, returning rewards to stakers after deducting fees.
Earlier this month, Coinbase resumed Bitcoin-backed loans for U.S. users after axing them in July 2023 following a similar SEC complaint.
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Daily Bits… ✍️✍️✍
💰 Crypto PAC Fairshake secured $116 million for the 2026 midterms, with major contributions from Coinbase, Ripple, Andreessen Horowitz, and Jump Crypto, as it continues backing pro-crypto candidates.
🚖 Solana-based ridesharing app Teleport is shutting down, citing financial challenges despite raising $9 million in 2022 amid a wave of decentralized physical infrastructure projects, with users able to off-ramp funds until Feb. 28.
⚖️ LayerZero Labs has settled its legal dispute with the FTX bankruptcy estate, resolving a two-year lawsuit over a $150 million equity deal with Alameda Research made just before FTX collapsed that the estate had sought to claw back as a fraudulent transfer.
⚖️ The Arkansas Senate rejected a bill to ban crypto mining within 30 miles of military facilities, despite concerns over national security risks, as U.S. President Donald Trump vows to support American bitcoin mining, which now accounts for 40% of global hash power.
🪙 Venmo co-founder Iqram Magdon-Ismail and venture investor Sam Lessin launched the JellyJelly token on Pump.fun, linking it to their content-focused app, which surged to a $250 million valuation in under three hours before dropping 53% amid concerns over its utility.
📈 NYSE Arca filed to convert Grayscale’s XRP Trust into a spot ETF, with Coinbase Custody and BNY Mellon handling key roles, as issuers race for crypto ETF approvals following the re-election of Donald Trump as U.S. president and amid shifting American regulations.
⚖️ Memecoin launchpad Pump.fun faces a class-action lawsuit alleging it facilitated the sale of unregistered securities, with plaintiffs claiming the platform generated $500 million in fees from memecoin creations, while the U.S. Securities and Exchange Commission under President Donald Trump is restructuring its approach to crypto regulation.
Today in Crypto Adoption...
🏦 The Czech National Bank approved a study on adding bitcoin to its reserves, pushed by Governor Aleš Michl, although the idea faced opposition from the country’s finance minister and European Central Bank President Christine Lagarde.
The $$$ Corner…
🔒 Zero-knowledge-proof infrastructure startup Irreducible secured $24 million in series-A funding co-led by Paradigm and Bain Capital Crypto, focusing on accelerating ZKP computations using FPGA chips for faster and more efficient privacy solutions.
🔗 Public blockchain project Elastos raised $20 million from investment and advisory boutique Rollman Management to expand its Bitcoin DeFi protocol, BeL2, aiming to enable BTC holders to collateralize assets and access Ethereum-based DeFi services through merge mining.
What Do You Meme?
📈 Your Market Update 📉
BTC is down 0.1%, trading at $104,980
ETH is up 4.1%, trading at $3,358
BTC dominance: 55.62%
Crypto market cap: $3.73T
*All data as of today, 08:10 am ET. Source: CoinGecko
Recommended Reads
DL News: How a North Korean dev tricked a Solana trading bot team and stole $1.4m
Gwart on valuation metrics in crypto
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