Recapping the Week in DeFi

As the DeFi and crypto space continues to evolve at a rapid pace, it's essential to stay informed 

about the latest developments and trends. Our weekly recap provides you with a concise yet comprehensive overview of the most significant news and trends in the DeFi and crypto space, helping you stay informed and up-to-date with the latest happenings.

FTX Sues Binance and CEO Changpeng Zhao for $1.8B Over Alleged Fraud

FTX has filed a $1.8 billion lawsuit against Binance and its former CEO, Changpeng Zhao (CZ), claiming fraudulent transfers in a 2021 share buyout deal. According to the lawsuit, Binance received $1.76 billion in FTX tokens (FTT) and Binance coins (BNB, BUSD) in exchange for its stakes in FTX entities. FTX’s bankruptcy estate alleges that the funds were misappropriated, potentially from customers, and that FTX was insolvent at the time, making the transaction invalid.

Details in the article.

18 U.S. States Sue SEC Over Alleged Overreach in Crypto Regulation

A coalition of 18 U.S. states, led by Kentucky, has filed a lawsuit against the SEC, accusing the agency of exceeding its constitutional authority in regulating cryptocurrencies. The Republican attorneys general from states including Texas, Florida, and Ohio argue that SEC Chair Gary Gensler's approach undermines state regulatory powers and hinders innovation in the $3 trillion digital asset market. 

Learn more.

U.S. DOJ Investigating Polymarket for Alleged U.S. Citizen User Activity

The U.S. Department of Justice (DOJ) has reportedly launched an investigation into Polymarket, a crypto-based prediction platform, for potential regulatory breaches. Despite settling with the Commodity Futures Trading Commission (CFTC) in 2022—paying $1.4 million and restricting U.S. users—new allegations suggest the platform may still be accessible to U.S. citizens. The DOJ is examining Polymarket’s operations and compliance measures.

Find more information here.

Pennsylvania House of Representatives Introduces Bill to Hold Bitcoin as Reserve Asset

The Pennsylvania House has introduced the "Bitcoin Strategic Reserve Act," seeking to allocate up to 10% of the state’s $7 billion treasury to Bitcoin. Sponsored by Rep. Mike Cabell, the bill aims to protect against inflation and align with growing adoption of digital assets. If approved, Pennsylvania would become the first U.S. state to directly invest in Bitcoin.

Read the full story. 

Floki Joins Forces with Animoca Brands' Forj to Launch $MONKY Memecoin

Floki has announced its support for the $MONKY memecoin, set to launch on November 21, 2024, by Forj, a subsidiary of Animoca Brands. Backed by major crypto players like Bored Ape Yacht Club and ApeCoin, $MONKY will allocate 45.5% of its token supply in an airdrop to multiple communities, signaling a strong entry into the crypto space.

Details here.