Crypto Daily Roundup: Kuwait Bans Digital Currencies

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering

Valuing Coinbase is a bit like boiling the ocean. Its finances are hard to predict – it made a profit in 2021 but is currently loss-making, and analysts think it will remain so until at least 2025, according to Refinitiv. Alameda Research's former Co-Chief Executive Officer Caroline Ellison estimated there was a more than $10 billion cash deficit at FTX.com about eight months before the crypto exchange collapsed. But it also faces existential risks. With this crypto daily roundup, you can jumpstart your day with the latest updates on cryptocurrencies like Bitcoin, Ethereum, and more.

Crypto Price Movement

Bitcoin extended its drop for another day to remain below $30,000-mark, while Ethereum was trading slightly higher but could not race past $1,900-level. Other popular altcoins like Dogecoin (DOGE), Litecoin (LTC), and Solana (SOL) saw a fair mix of dips and gains across the board. The global cryptocurrency market cap was trading flat and it continued to hold at $1.21 trillion-mark as it declined marginally, less than a per cent, in the last 24 hours.

Ellison admitted to fraud and is cooperating with prosecutors

Alameda Research's former Co-Chief Executive Officer Caroline Ellison estimated there was a more than $10 billion cash deficit at FTX.com about eight months before the crypto exchange collapsed.

Ellison made the estimate in March 2022 in private notes, according to the latest complaint filed Thursday in the ongoing bankruptcy process for FTX.

Kuwait banned crypto

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

The Capital Markets Authority also placed an "absolute" ban on all digital asset mining, prohibited the recognition of crypto as decentralized currency, and also warned the public that companies are not allowed to provide any type of crypto-related services.

"Securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition," the circular said.

North Korean hackers stole crypto-sources

A North Korean government-backed hacking group penetrated an American IT management company and used it as a springboard to target cryptocurrency companies, according to two sources familiar with the matter.

The hackers broke Into Louisville, Colorado-based JumpCloud in late June and used their access to the company's systems to target its cryptocurrency company clients in an effort to steal digital cash, the sources said.

What's new with Coinbase?

Coinbase Global's COIN.O stock has risen from the ashes of last year's cryptocurrency market conflagration. But the digital exchange's ascent defies both gravity and logic. Not only does Coinbase's value hang on factors that are almost impossible to predict, but even in the best case, it's a mystery why the market would think the firm run by former software engineer Brian Armstrong is worth anything like its current $25 billion.

Shares in Coinbase got a major boost after money management behemoth BlackRock BLK.N applied to launch a bitcoin-backed exchange-traded fund this month with Coinbase as its custodian. For an industry still in its infancy, alliances with old-school Wall Street names are a big win. Extra exuberance came from a legal win by Ripple, a creator of digital tokens that – like Coinbase – had been accused by the Securities and Exchange Commission of selling unregistered securities. Coinbase shares are up nearly 54% in July, handily beating the tech-heavy Nasdaq Composite Index .IXIC, which rose 4%.