Bitcoin slumps after CPI release; Fed Vice Chair warns banks on crypto company deals

The biggest news in the cryptoverse for Oct. 13 includes Bitcoin falling by 3% as CPI data of 8.2% worsen fear of rate hikes, Binance allegedly filing inadequate financial reports in the UK, STEPN denying lay-off claims, and U.S. lawmakers demanding a probe of ERCOT for paying Bitcoin miners in Texas.

CryptoSlate Top Stories

Bitcoin slumps 3% as data reveals hotter than expected CPI print

September’s Consumer Price Index (CPI) data released today showed an 8.2% rise in inflation. Following the announcement, BTC dipped by 3% to bottom at $18,200.

Analysts predict that with higher CPI figures, the Fed will necessarily hike rates by 75 basis points come Nov. 3.

Fed Vice Chair urges banks to deal cautiously with crypto firms

Michael Barr called on federally regulated banks dealing with crypto firms to ensure that they have measures put in place, to prevent crypto-related risks from spilling over into the broader economy.

Barr cautioned that liquidity risks such as a bank run on crypto exchanges in partnership with a bank may undermine its financial stability.

Elizabeth Warren-led US lawmakers demand probe of ERCOT’s support for Bitcoin miners in Texas

Many crypto miners are setting up their rigs in Texas, owing to the Electricity Reliability Council of Texas (ERCOT)’s crypto-friendly policies.

A group of U.S. lawmakers led by Senator Elizabeth Warren has called for an investigation into ERCOT’s mining policies.

The lawmakers stated that it is unfair for the miners to be paid by the state for curtailing the energy load they incurred on the grid.

October becomes worst month in DeFi history as hackers steal $718M across 11 protocols

October has been more of “Hacktober” as 11 DeFi protocols lost $718 million in the first two weeks of the month.

According to Chainalysis, cross-chain stood out as the biggest target for hackers. About $600 million has been lost to three bridge hacks, with Binance BNB chain accounting for $100 million of the recorded losses.

French cyber-crime authority leverages ZachXBT’s research to apprehend NFT scammers

Prominent figures including footballer Neymar and rapper Eminem reportedly lost their Bored Ape Yacht Club NFTs worth about $2.5 million to phishing scams.

However, on-chain sleuth ZachXBT launched an investigation that helped the French cyber-crime authority arrest the group of five NFT scammers.

Binance allegedly filed inadequate financial report in UK – FT

Binance partnered with Dimplx to register Binance Digital back in 2019. However, a severed relationship has led Dimplx to reveal that Binance falsely reported the financials of their UK subsidiary and failed to remit tax dues.

Dimplx said it would proceed to sue the leading crypto exchange for filing inadequate financial reports.

How Bitcoin turns El Salvador into the next Singapore according to Max Keiser

Bitcoin maximalist Max Keiser said El Salvador’s move to make Bitcoin a legal tender helped the country’s GDP grow by 10% and its tourist visitors increase by 83% as of the end of 2021.

Consequently, the country is working to implement appropriate securities laws to put Bitcoin at the core of the country’s international trading strategy. The move will supposedly see El Salvador become the central financial hub of Latin America.

STEPN denies claims of layoffs

Earlier reports claimed that move-to-earn gaming company STEPN laid off over 100 staff members.

STEPN has reached out to CryptoSlate to debunk the reports. However, it admitted to only relieving volunteer MODs of their roles.

Research Highlight

US debt surpasses $31 trillion

The national debt of the world’s leading economy has reached a peak of over $31 trillion, with its debt-to-GDP ratio standing a 137%.

Given a 3.2% interest rate, the U.S. would need to pay up to $1 trillion to service the debt annually.

Consequently, the U.S. may have to borrow more or embark on aggressive quantitative easing (QE) to pay up its debt, which may worsen the recession fears.

News from around the Cryptoverse

Uniswap Labs Raises $165M

Decentralized exchange platform Uniswap Labs announced that it has raised $165 million in a Series B round to advance its web app, developer tools, and NFT project.

Voyager Digital Creditors oppose plans to immune Execs from lawsuits

Voyager Digital executives had filed a motion seeking to provide them immunity against legal confrontations.

Voyager’s unsecured creditors’ committee (UCC) opposed the motion on the grounds that the executives want to evade the responsibility of paying back creditors from the $1.4 billion expected from FTX.