Daily Digest

Happy Thursday! Today’s summary covers Ripple’s $125 million fine, JPMorgan’s insights on bitcoin, Franklin Templeton’s tokenized fund on Arbitrum, and more.

Ripple’s $125 million fine

Crypto payments firm Ripple was fined $125 million in its litigation with the SEC, according to a court filing on Wednesday.

• The SEC accused Ripple in 2020 of raising $1.3 billion through the sale of XRP, which it claims is an unregistered security.
• The court granted part of the SEC’s motion for remedies, resulting in a civil penalty of $125,035,150.
• Ripple’s fine is significantly lower than the SEC’s proposed $2 billion penalty; Ripple argued it should be closer to $10 million.
• XRP surged more than 25% following the news to around $0.63.

Bitcoin’s institutional investor rebound

JPMorgan analysts reported that bitcoin’s rebound, following a 15% drop earlier this week, is mainly supported by institutional investors.

• Current positions suggest a bullish outlook among institutional investors, with positive indicators in bitcoin futures contracts.
• Factors bolstering optimism include Morgan Stanley’s crypto ETF recommendations and the political landscape in the U.S.
• Despite optimism, analysts maintain caution due to vulnerabilities in the crypto market.

Franklin Templeton’s tokenized fund expands to Arbitrum

Franklin Templeton has launched its OnChain U.S. Government Money Fund (FOBXX) on Arbitrum, partnering with the Arbitrum Foundation.

• Investors can access the fund via Franklin Templeton’s blockchain-integrated Benji Investments platform.
• This expansion aims to blend traditional finance with DeFi, utilizing Arbitrum’s status as the largest Ethereum Layer 2 network.
• FOBXX was the first U.S.-registered fund to use a public blockchain, introduced in 2021.

WazirX to undo all trades following $230 million hack-related withdrawal freeze

The Indian crypto exchange WazirX will revert all trades following a withdrawal freeze due to a hack.

• Users’ balances will be restored to their status as of July 18, 2024.
• A wallet exploit resulted in the unauthorized transfer of over $230 million; the hack is suspected to be affiliated with North Korean hackers.
• Initially, WazirX proposed a “socialized loss strategy” but faced backlash, opting instead to restore balances.

Kamala Harris ties with Trump at 49% election odds on Polymarket

Kamala Harris’ election odds have risen to 49% on Polymarket, tying her with Donald Trump.

• Trump’s chances have decreased from about 70% in mid-July.
• The Harris campaign has begun outreach to the crypto industry, adding notable figures like David Plouffe to her team.

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