Qrafty heard about the $33 Trillion US Debt, The New Panama Papers and Binance's Collateralizations Ain't Well

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty has fresh bits from the crypto jungle, so let’s dive in: 📰 🌟

1. The New Panama Papers: Banks Private Blockchains

2. Celebrities Settle FTX Lawsuit

3. US National Debt Reaches $33 Trillion

Bonus: SEC says Binance’s reserves aren’t looking good

Hello Digital Private Banking

Well, imagine a secret financial world, where the super-rich stash their wealth away from prying eyes. Not really hard to imagine that, isn’t it? That's private and offshore banking for you, aka reality. It's like a VIP club where regular folks aren't welcome. Now, enter digital private banking on private blockchains: the VIP club on steroids.

With private blockchains, banks have the perfect toolkit for hiding and zipping money across the globe, leaving no fingerprints. It's like a magic trick, but instead of pulling a rabbit out of a hat, they're making money disappear.

How can they do that, Qrafty?

Just from the top of Qrafty’s head, build two blockchains! It’s just like parallel accounting. Keep a bit on the official blockchain, to have something to show to the authorities (ha, what a good joke). And another one where the real transactions happen, where they can do anything they want without anyone watching them. Just like offshore banking now!

And here's the kicker - authorities have this habit of turning a blind eye. Remember the Panama Papers? It was like a blockbuster movie with big names, but sadly, not much action from the authorities. Now, with digital private banking, the sheet show will be even bigger, and the lack of interest from those in charge WILL let it run wild.

So, imagine a world where financial transparency takes a back seat (not that it’s too front seat now), and the well-connected play fast and loose.

That's the brave new world of digital private banking, making the Panama Papers look like child's play. What a time to be alive, right?

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

1. If you’ve got cash or fame, you’re good! Both, better!

It doesn’t really matter if you lie to your audience, cheat, steal or deceive… it can be “contained“ and you’re going to settle with the authorities. It’s all love, baby!

Why are you saying that, Qrafty?

Imagine being an NFL star or a YouTube sensation, and you got paid to shill crypto to your followers. Cool, right? Doesn’t matter what happens to them, you got your money. And it something does happen, like… you know… people being scammed or cheated, well… Jacksonville Jaguars' Trevor Lawrence and YouTubers Tom Nash and Kevin Paffrath can tell you all about it. They've settled lawsuits linked to their sponsorship deals with the now-defunct FTX exchange. See? It’s that easy!

Lawrence was accused of giving investors the slip, and while the settlement amount remains hush-hush, Nash and Paffrath also inked deals, keeping the figures secret. This comes after a wave of lawsuits against influencers who once sang FTX's praises. What, you thought something will happen to them? Lawl!

But wait, there's more! FTX's list of celebrity entanglements doesn't stop there. Tom Brady, Gisele Bundchen, Shaquille O’Neill, and Naomi Osaka are also caught in the legal web, but most likely they will settle too. So relax, your fav celebs are fine.

To top it all off, FTX faced a cyber-attack, causing a hiccup in client reimbursements, and a federal judge gave the green light for FTX to auction off its assets.

Cryptos and celebrities, eh? Another sheet show…

2. Citigroup Builds Private Blockchain for Rich Peeps

Guess who just joined the crypto party? Citigroup! Yep, the big financial player is making moves in the digital world with its new creation, "Citi Token Services." Sounds fancy, right?

Sending money across borders should be like sending a text message: free and instant. But banks made sure to milk that cow for as long as possible and rip off people for fees and transaction and processing fees. The bank’s new shiny blockchain isn’t just for sending money across borders, it’s for making sure that customer assets are very well hidden.

They're using this thing called a "private blockchain" (it's a secret digital ledger where they can do anything they want, outside of public scrutiny) to help big institutions send money across borders at lightning speed. They're taking old-school bank guarantees and letters of credit and turning them into digital versions. It's like going from a snail mail to email for large transactions.

They teamed up with Maersk, the massive logistics company for tests and transactions that used to drag on for days are now zipped up in minutes.

But wait, there's more! They're also offering 24/7 trade finance solutions too. So it’s no surprise that Citigroup is predicting that central bank digital currencies and asset tokenization will be the next big thing. That’s some genius level thinking right there!

3. 9 US Senators Support Warren’s Crypto Bill

In a surprising turn of events, nine U.S. Senators, including Elizabeth Warren, have rallied behind the Digital Asset Anti-Money Laundering Act.

Their noble cause? To shield US citizens from crypto's potential dangers in money laundering, tax evasion, and sanctions dodging. But not against , mkay?

And look who's leading the charge—Senators Gary Peters and Dick Durbin, the self-proclaimed crypto experts! They're out to put an end to all that money laundering, tax dodging, and sanctions dancing that crypto seems to be so fond of.

Warren's even got a price tag on it: a whopping $50 billion crypto tax gap. And if that's not enough, she's warning of a potential $1.5 billion tax revenue loss in 2024. Quite the pocket change, isn't it?

So, here's to our Senators, riding in to rescue us from the big, bad world of crypto. Looking forward to the day when they ban themselves or their family doing insider trading in the stock market!

4. Fraud and Friend dot tech Lead Base to Almost 2M Transactions

Think of Base Network like a big river for digital money movement; that’s why it’s also called liquidity… get it?

Recently, it handled 1.88 million transactions in a day. That's a big deal! However, in the grand scheme of things, there are even bigger rivers like Polygon and BNB Smart Chain. Still, Base Network is gaining traction, with 86,000 users on September 14th. Since its launch on August 9th, it's been a hub for various token activities.

Notable stats include creating 700,000 unique digital collectibles (NFTs), moving over $242 million in assets, having 268,000 wallets, and hosting 130,000 active users daily.

Oh and a lot of scams, frauds and rugpulls, just to be clear on that. Base is nowhere near the concept of a successful blockchain, by any measure. Qrafty wrote about it in previous editions.

5. NYDFS Wants Public Feedback on Crypto Regulations

Qrafty wanted to give you a heads up on the latest move from the New York Department of Financial Services (NYDFS). They're upping the ante on crypto coin listings, especially if they're targeting everyday investors. The key player here is Adrienne Harris, the Superintendent at NYDFS, who's driving this effort.

Fun time is over. The main idea is that licensees looking to list new coins will have to do a thorough risk assessment. This means looking at the legal, reputational, and market risks involved. They'll also need a solid plan for how they'd de-list a token if needed. This shows a strong focus on protecting consumers and the markets.

On the flip side, NYDFS has made it easier for licensees by updating its list of 'greenlisted' coins. This includes big names like Bitcoin, Ether, and stablecoins from PayPal and Gemini.

Qrafty will keep an eye on this space, as it's part of New York's pioneering efforts in U.S. crypto regulation. Kraken, have voiced their concerns and decided to pull out, in protest.

Hey there 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

If so, please click on the button below. Qrafty is really really grateful to have you here, so thank you!

Tomorrow, the sun rises just as punctually as our plans unravel in delightful chaos.

Qrafty’s thougt of the day

Other stories

SEC asks court to order an inspection into Binance US

Oh, what a shocker! Brace yourselves, folks! The Binance US auditor, in a groundbreaking revelation, has discovered that it's "very difficult" to guarantee the company's full collateralization at particular moments. Yes, you read that right – the SEC just dropped the bombshell in their unsealed files. Who would've thought that ensuring a crypto giant's financial security could be a tad tricky?

US national debt reaches an all-time high of $33 trillion

That’s $33,000 billion, with a b. Or 33 million millions! And no, it’s not going to stop anytime soon. On the contrary, it’s just going to keep rising and rising! Just to have an idea how fast, in January 2023, the debt limit was $31.41 trillion.

Web3 is for supply chain and digital identity

Or at least that’s what a Google exec says! Currencies and blockchain work nice for banks and degens on Twitter, but for James Tromans, Google’s head of Web3 it’s identity and supply chain. We all have our fetishes…

JPEX shuts down, influencer arrested

The Hong Kong police are currently conducting an investigation, leading to the suspension of trading on the cryptocurrency platform JPEX. Also, crypto influencer Joseph Lam (Lin Zuo) was arrested in connection with this case.

Market Whispers

Bitcoin started the week very determined, going rapidly to $27,400.

As usual, the retrace came pretty quickly too. The good news is that for now it holds 26600$, which was the previous range low from June-July.

So, we might have another chance to go higher. If it finds acceptance below 26600$ prepare for another ride down towards 25,3 or even 24,8k.

Today is NATIONAL FIRST LOVE DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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