Crypto News: Bitcoin Sale, Ripple’s RLUSD Push, Coinbase SEC Appeal

January 10, 2025

Crypto World

Maciej Zerelik

Get ready to catch the hottest updates from StealthEX and CryptoDaily! Each week, we bring you the buzzworthy stories shaking up the crypto space. Wondering what’s trending? Our no-fuss recap delivers the key highlights in a way that’s quick, clear, and exciting. Stay ahead of the curve, uncover fresh insights, and be part of the action. Don’t just follow the trends—own them. Ready to jump in? Let’s go!

Massive Bitcoin Sale Looms: U.S. Justice Department to Offload 69,000 BTC

Bitcoin faces a fresh challenge as the U.S. Department of Justice gears up to sell an enormous stash of the cryptocurrency. The 69,000 BTC haul, valued at approximately $6.5 billion, was confiscated from the infamous Silk Road marketplace. The sale has sparked speculation about its potential effects on the market.

This isn’t the first time a government has sold off a large amount of Bitcoin, but the scale is unprecedented. It surpasses the German government’s sale of 50,000 BTC in mid-2024. That sale caused noticeable ripples in the market, with Bitcoin prices reacting to the sudden influx of supply.

The Justice Department plans to take a more cautious approach this time. Unlike Germany’s rapid three-week sell-off, the U.S. intends to avoid flooding the market. Coinbase, a leading cryptocurrency platform, will handle the sale through over-the-counter (OTC) transactions. This method aims to limit disruption to Bitcoin’s spot price.

Traders and investors remain watchful, knowing the market can be sensitive to such developments. A sudden sell-off could shake confidence, while a measured approach might ease concerns. 

Coinbase Scores Key Victory in Legal Clash with SEC

A major breakthrough has emerged in the ongoing legal showdown between Coinbase and the U.S. Securities and Exchange Commission (SEC). A federal judge has granted Coinbase the right to pursue an interlocutory appeal, halting the current district court case and elevating the dispute to a higher judicial level.

Judge Katherine Polk Failla, presiding over the Southern District of New York, approved Coinbase’s motion, allowing the exchange to seek clarification from the Second Circuit Court of Appeals. This appeal challenges the SEC’s claims that Coinbase operated as an unregistered securities exchange, broker, and clearing agency since 2019.

The SEC’s allegations hinge on the argument that some crypto transactions on Coinbase involve assets that meet the legal definition of investment contracts. Coinbase disputes this, pointing out that the SEC did not classify these assets as securities when the exchange was approved for public listing.

Conflicting rulings in similar cases have added to the legal complexity. For instance, a recent decision in the Ripple case determined XRP was not a security in certain sales. These discrepancies prompted Judge Failla to stress the importance of appellate guidance to resolve the broader legal uncertainties surrounding crypto regulation.

Coinbase’s legal team celebrated the ruling, emphasizing their commitment to defending against the SEC’s allegations. The case now advances to the Second Circuit, marking a critical step in this high-stakes regulatory battle.

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Ripple Joins Forces with Chainlink to Expand RLUSD Stablecoin Reach

Ripple has announced a strategic partnership with Chainlink to strengthen the adoption and functionality of its RLUSD stablecoin within the decentralized finance (DeFi) ecosystem. The collaboration leverages Chainlink’s decentralized oracle technology to deliver accurate and secure price data for RLUSD transactions across the XRP Ledger and Ethereum networks.

Launched in December 2024, RLUSD is Ripple’s entry into the competitive stablecoin market, where Tether (USDT) and Circle (USDC) dominate. By integrating Chainlink’s robust infrastructure, Ripple aims to enhance RLUSD’s utility in key applications like payments, trading, and lending. Chainlink, which underpins over $18 trillion in transaction value, offers Ripple a strong foundation for scaling its stablecoin.

Ripple’s Senior Vice President of Stablecoin, Jack McDonald, emphasized the importance of reliable data in building trust and stability for RLUSD. He noted that Chainlink’s technology enables transparent pricing essential for institutional and DeFi applications.

This partnership aligns with Chainlink’s broader mission to provide decentralized data solutions for blockchain projects. The company has collaborated with other industry leaders, such as Coinbase, to manage tokenized assets, further demonstrating its role in driving DeFi adoption.

The introduction of RLUSD comes at a pivotal time, as regulatory changes in Europe prompt major exchanges to delist non-compliant stablecoins like USDT. This shift opens the door for new entrants like RLUSD to capture market share. Early data indicates significant traction, with thousands of transactions already recorded since its launch.

Pierre Poilievre Poised to Succeed Trudeau as Canada’s Next Prime Minister

Pierre Poilievre, leader of Canada’s Conservative Party, is gaining momentum as the leading candidate to replace Justin Trudeau as prime minister. Predictions on Polymarket, a decentralized betting platform, show Poilievre with an 89% chance of victory in the next federal election, based on user wagers totaling over $250,000.

Since opening in late December, the Polymarket prediction market has attracted significant interest, with more than $400,000 in trading volume. The market will confirm Poilievre’s win if he becomes prime minister after the election.

Poilievre has been a prominent figure in Canadian politics, serving in senior roles under former Prime Minister Stephen Harper and leading the Conservative Party since 2022. Known for his support of cryptocurrency, he has openly invested in Bitcoin through a Canadian ETF and advocates for greater financial freedom in digital assets.

His campaign focuses on lowering taxes, cutting government spending, and tackling affordability issues, aiming to steer Canada away from the current Liberal-NDP coalition. Poilievre’s platform resonates with voters seeking economic reforms and stronger national security measures.

The political landscape shifted dramatically after Trudeau’s recent resignation as Liberal leader, citing internal pressures and waning public support. This followed Deputy Prime Minister Chrystia Freeland’s resignation in December, which further destabilized the Liberal Party.

With the Liberals struggling to maintain public confidence amidst rising dissatisfaction over policies like carbon taxes and housing costs, Poilievre’s message of financial reform appears to be striking a chord with Canadians. The upcoming election could mark a major turning point in Canada’s political direction.

FTX Bankruptcy Plan Kicks Off: Creditors Begin Receiving Reimbursements

The FTX debtors group has officially implemented its bankruptcy plan as of January 3, marking a significant step toward compensating creditors of the collapsed cryptocurrency exchange. The initial focus is on claims under $50,000, with payouts expected to commence within 60 days of the plan’s effective date.

Creditors in the approved “Convenience Classes” will receive 119% of their allowed claim amount, including both principal and accrued interest. To qualify for payments, users must complete KYC verification and ensure their claims are classified as “allowed” by the initial distribution record date. Submissions must be made through FTX’s official website.

This plan, approved in October, represents the final chapter in FTX’s high-profile collapse. The exchange filed for bankruptcy in 2022, sparking investigations that led to the arrest and conviction of several top executives, including founder Sam Bankman-Fried.

Despite the progress, FTX has warned users to remain cautious of phishing scams posing as official communications from the debtors. The group has advised customers to verify all emails and avoid scam sites mimicking FTX’s customer portal.

However, the bankruptcy plan has not satisfied everyone. Critics argue that basing reimbursements on the asset prices at the time of bankruptcy is unfair, especially as Bitcoin has surged over 400% since FTX’s collapse. With Bitcoin now nearing the $100,000 mark, many believe creditors are losing out on potential value.

Among FTX’s former leadership, most executives, including Bankman-Fried and ex-Alameda Research CEO Caroline Ellison, face prison terms. Only two, Nishad Singh and Gary Wang, avoided incarceration, further spotlighting the fallout from one of the cryptocurrency industry’s biggest scandals.

Terraform Labs’ Do Kwon Pleads Not Guilty in $40 Billion TerraUSD Collapse Case

Do Kwon, co-founder of Terraform Labs, has pleaded not guilty to charges related to the catastrophic $40 billion collapse of the TerraUSD stablecoin. Prosecuted by the Manhattan U.S. Attorney’s office, Kwon faces nine counts, including securities, wire, and commodities fraud.

Despite maintaining his innocence, Kwon agreed to remain in custody without bail. His legal troubles mark the climax of a two-year saga that spanned multiple jurisdictions. Arrested in Montenegro for attempting to travel with a forged passport, Kwon was extradited to the U.S. after months on the run. During his court appearance, he spoke only to confirm his understanding of English.

The charges against Kwon stem from allegations that he misled investors about Terraform’s technology and capabilities. Prosecutors argue that Kwon falsely claimed Terraform Labs had created a revolutionary decentralized finance ecosystem with its own payment system, currency, and financial services. Instead, they allege, the entire operation was built on deceptive practices designed to lure investors into a system that did not work as advertised.

According to the indictment, Kwon’s actions contributed not only to the collapse of TerraUSD but also to broader turmoil in the cryptocurrency market, including the downfall of major firms like FTX.

IRS Postpones New Crypto Tax Rules, Offering Relief to Investors and Exchanges

The IRS has delayed the implementation of new cryptocurrency tax reporting rules until December 31, 2025, providing centralized exchanges and brokers more time to adjust. This move also spares digital asset investors from potentially higher tax liabilities tied to the First In, First Out (FIFO) accounting method.

Under the proposed regulations, centralized cryptocurrency exchanges would have been required to default to FIFO for calculating capital gains. This method, which assumes the earliest purchased assets are sold first, often results in higher taxable gains, especially in a rising market.

Tax expert Shehan Chandrasekara, Head of Tax at CoinTracker, explained the potential challenges of mandatory FIFO. Selling older assets with lower cost bases could unintentionally inflate taxable gains, particularly during a bull market, leading to unexpectedly high tax bills for investors.

The IRS decision reflects the complexities of crypto taxation and the need for regulatory flexibility. Investors now have the option to use alternative accounting methods, such as Highest In, First Out (HIFO) or Specific Identification (Spec ID), which offer greater control over tax outcomes. The delay also gives centralized exchanges time to develop the infrastructure needed to support these options.

The relief is automatic, meaning investors don’t need to take immediate action. However, starting January 1, 2026, investors will need to select an accounting method. Failing to do so will result in a default to FIFO, potentially increasing tax burdens.

Celsius Appeals $444M Claim Dismissal in FTX Bankruptcy Case

Celsius Network has filed an appeal against a court ruling that dismissed its $444 million claim in the ongoing FTX bankruptcy proceedings. The appeal challenges the December decision by Judge John Dorsey, who rejected Celsius’ claims, citing procedural missteps and insufficient evidence.

The dispute centers on Celsius’ allegation that “preferential transfers” unfairly benefited certain creditors before FTX’s collapse. Initially, Celsius sought $2 billion in damages, claiming that unsubstantiated statements from FTX contributed to its downfall. The claim was later reduced to $444 million.

Judge Dorsey ruled that Celsius’ original filing was inadequate, containing only vague references to potential claims. The amended filing, submitted months later, was dismissed because Celsius failed to obtain the required permission and did not adequately justify the delay. The judge also argued that allowing the amendment could disrupt FTX’s reorganization efforts.

Celsius maintains that its initial filing met legal requirements and argues the court’s dismissal was unwarranted. On December 31, Celsius litigation administrator Mohsin Meghji formally appealed the ruling, seeking to overturn the decision.

This legal battle adds to Celsius’ ongoing efforts to repay creditors. Since 2023, the company has returned $2.5 billion to over 250,000 creditors and plans to distribute an additional $127 million from its litigation recovery account. Despite these repayments, Celsius’ native token, CEL, has struggled, falling to under $0.20 from a high of $0.56 in September 2024.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.