They highlighted his price manipulation from trading large sums between his own accounts to artificially inflate the value. But Eisenberg's defense, led by attorney Brian Klein, claimed that the trades were permissible on the mango markets protocol, suggesting that a lack of explicit terms of use allowed Eisenberg's strategy. a former security engineer received a three-year prison sentence for the first-ever conviction of hacking a smart contract involving over $12 million in stolen crypto. Hong Kong approves first Bitcoin and Ethereum spot ETFs. The Hong Kong Securities and Futures Commission granted preliminary approval to four asset managers to launch the city's first spot, Bitcoin and Ethereum exchange traded funds china asset management bocera capital hashkey capital and harvest global received approvals estimates on potential inflows vary with some analysts suggesting the etfs could attract up to one billion dollars predominantly in bitcoin restrictions on mainland china investors however and the scope of Hong Kong's ETF market overall might limit demand, at least compared to the U.S., where Bitcoin ETFs have amassed nearly $60 billion. The Hong Kong launches are expected to positively impact prices by increasing demand and potentially tying up liquidity, mirroring previous U.S. market impacts. Senators introduce latest stablecoin regulation bill. Senators Cynthia Lummis and Kirsten Gillibrand unveiled a new legislative proposal aimed at regulating stablecoins, or digital assets pegged to stable currencies like the dollar. The bill specifies permitted stablecoin issuers and establishes strict operational standards, including requiring issuers to maintain dollar-backed reserves and operate as either registered non-depository trust companies or depository institutions. It also mandates full reserve backing with public disclosures. Notably, the bill would prohibit algorithmic stablecoins, which rely on algorithmic mechanisms rather than full collateralization. Crypto-skeptic Senator Sherrod Brown expressed willingness to advance U.S. legislation on stablecoins, emphasizing the need for thorough regulatory scrutiny prior. Meanwhile, the United Kingdom is set to introduce new legislation by July that would regulate stablecoins, along with crypto-staking, exchange, and custody services, aiming to establish the country as a crypto hub. Senators seek clarity on CFTC Chair's ties to FTX founder. Senators Elizabeth Warren and Chuck Grassley have requested detailed information from Commodity Futures Trading Commission Chair, Rostin Benam, regarding his communications with FTX founder, Sam Bankman-Frid. The inquiry, following Bankman-Frid's conviction, aims to scrutinize Banam's interactions with Bankman-Frid during the critical months before the exchange declared bankruptcy. The lawmaker's letter demands that Banam submit records of all meetings, phone calls, and messages exchanged with Bankman-Frid by April 29. This request is part of a broader investigation into how regulatory oversight may have fallen short in allowing fraud at FTX to take place. Rising Tide of Ethereum. Layer 2s and wallets. Ethereum Layer 2 solutions and self-custodial wallets are surging. They aim to improve transaction speeds and cut costs. OKEx, a major crypto exchange, has launched its X-Layer, a Layer 2 solution built using the Polygon Chain Development Kit. This platform allows OKEx's 50 million users to interact seamlessly with Ethereum-based decentralized applications, enhancing scalability and privacy through zero-knowledge proofs. Simultaneously, WorldCoin, founded by Sam Altman, is introducing WorldChain, a Layer 2 network prioritizing human users over bots. This network uses retina-scanning technology to verify human identities, offering faster transaction processing for verified users. Adding to the innovations, Kraken has rolled out a new self-custodial mobile wallet, allowing users to manage assets across blockchains. Notably, Kraken's wallet is open source, with its code available on GitHub for enhanced security through third-party reviews. Uniswap's fee hikes Spark's revenue surge. Uniswap Labs increased its user interface swap fee to 0.25% from 0.1%, resulting in a record daily fee income of approximately $727,000. This surge in revenue comes as Uniswap prepares for a possible legal battle with the SEC, which has issued a Wells Notice to the company behind the decentralized exchange. Despite the financial boost, there's growing concern that the increased costs may drive users to alternative platforms. Already, there's a noticeable decline in unique traders, dropping 15% from $285,000 to about $241,000 shortly after the fee hike. This fee adjustment raises critical questions about its long-term impact on user retention and the platform's competitive edge. Bitcoin challenges Ethereum in daily transaction fees. In a significant shift, Bitcoin is increasingly rivaling Ethereum in daily transaction fees. Historically, Ethereum has led in fees generated, but recent data shows Bitcoin catching up, driven by the popularity of ordinals and BRC20 tokens.