Web3🌗Wednesday Roundup: Ethereum L2 Tempts Developers, $1.1B Exits GBTC in 3 Days, EU Banking Watchdog Extends Anti-Money Laundering to Crypto, and Sam Bankman-Fried's Parents Seek FTX Clawback Dismissal.

Embark on the latest developments in the dynamic world of #Web3. Join us as we delve into the intricate landscape of Web3, exploring key events shaping the future of decentralized technologies and digital assets.

1. Ethereum L2 Airdrop Tempts Developers

Ethereum layer-2 network Blast, despite controversy, attracts $1.3B in deposits. The test net is live, luring devs with the "Big Bang" competition, promising airdrop rewards for top apps. Blast founder Pacman, also behind the Blur NFT marketplace, guides developers. The airdrop distribution splits half to users and half to developers. Over 100,000 wallets locked $1.3B, earning "Blast points" for future tokens. Despite initial criticism, Blast aims to boost decentralized app (dapp) creation. Paradigm, a major backer, addresses concerns post-launch, emphasizing messaging and execution issues.

Ethereum L2 Blast Tempts Developers With Airdrop After Users Lock Up $1.3 Billion

The rollout of Ethereum layer-2 scaling network Blast hasn’t been without controversy, but even so, users have pumped the project with more than $1.3 billion in search of yield and

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2. $1.1B Exits GBTC in 3 Days; ARK Acquires Bitcoin ETF

Investors withdraw $1.1B from Grayscale's BTC ETF, prompted by narrowing discounts. GBTC outflows peaked at $594M in three days, reflecting renewed interest in other Bitcoin ETFs. GBTC, post-conversion, faces a discount, causing long-term investors to exit. Despite uncertainties in flow calculations, GBTC's estimated outflow is $1.17B, equivalent to about 27,000 Bitcoin. Other Bitcoin ETFs, including BlackRock's and Fidelity's, gain traction, ARK Invest's ARKB accumulating 2,535 BTC. As GBTC's discount narrows, long-term investors seize the exit, contributing to significant outflows.

Estimated $1.1B flees GBTC in 3 days as ARK begins buying own Bitcoin ETF

As investors exit, $1.1 billion is estimated to have left Grayscale’s Bitcoin fund in three days.

CointelegraphBrayden Lindrea

3. EU Banking Watchdog Expands Anti-Money Laundering Measures to Crypto

EU's banking watchdog issues guidelines for crypto firms on anti-money laundering measures, extending existing regulations to cover crypto assets. The European Banking Authority aims to harmonize the approach of crypto asset service providers (CASPs) across the EU to combat financial crime. The guidelines emphasize the increased risk associated with crypto-asset transfers, urging CASPs to be aware and implement effective measures to mitigate these risks. This aligns with the EU's broader legislative efforts in digital assets, including the Markets in Crypto Assets (MiCA) regulatory package. The guidelines will be effective from Dec. 30, coinciding with the full implementation of MiCA.

EU Banking Watchdog Extends Anti-Money Laundering Measures to Cover Crypto Firms

The European Union’s banking watchdog on Tuesday issued guidance for crypto firms to comply with its anti-money laundering and terrorist-financing requirements. The EU last year finalized legislation on the transfer of funds via digital assets alongside its landmark Markets in Crypto Assets (MiCA)…

Yahoo FinanceSandali Handagama

4. Sam Bankman-Fried's Parents Pursue Dismissal in FTX Clawback

FTX founder Sam Bankman-Fried's parents are seeking dismissal of a lawsuit filed by FTX to reclaim gifts amid its bankruptcy. FTX alleges they received a $10 million cash gift, a $16.4 million Bahamas property, and directed $5.5 million to Stanford University and $10 million to a political action committee. Bankman and Fried argue they lacked control over FTX and weren't aware of its troubles. Bankman, a Stanford Law School professor, provided legal advice but held no formal power. The suit is part of FTX's efforts to recover funds and has recovered over $7 billion since filing for bankruptcy.

Sam Bankman-Fried’s Parents Ask Court to Dismiss FTX’s Lawsuit Seeking to Recover Funds

Bankman and Fried, both professors at Stanford Law School, argued that Bankman did not have a fiduciary relationship with FTX .

CoinDeskAmitoj Singh

As we conclude this exploration into #Web3's latest happenings, the dynamic landscape continues to unfold with each development shaping the future of decentralized technologies. Ethereum's Layer 2 captures attention by enticing developers with airdrops, while significant capital exits GBTC, and ARK strategically enters the Bitcoin ETF arena. The EU Banking Watchdog's expansion of Anti-Money Laundering measures reflects a growing acknowledgment of cryptocurrency's impact on the financial sector. In parallel, Sam Bankman-Fried's parents seek resolution in the FTX clawback case, highlighting the legal complexities in this evolving space. Stay tuned for more insights into the ever-evolving world of Web3.

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