ALBAWABA - This week in Crypto News Recap, Abu Dhabi’s HUB71 launches a $2 billion initiative to promote WEB3-based innovations. El Salvador plans to open a “bitcoin embassy” in states, despite the IMF cautioning against increasing bitcoin exposure. And, speaking of the U.S., SEC files a lawsuit accusing terraform labs of multi-billion dollar crypto securities fraud.
All that and more so let’s dig in!
U.S. SEC files lawsuit accusing terraform labs of multi-billion dollar crypto securities fraud
Terraform Labs and its founder Do Kwon has been accused of conducting a crypto asset securities fraud worth billions of dollars by the U.S. SEC. The SEC has filed a lawsuit against them, alleging that they sold a series of inter-connected crypto asset securities, many of which were unregistered. The collapse of TerraClassicUSD and its related cryptocurrency, Terra Classic, were cited as evidence. The SEC is seeking charges for breaking securities laws related to registration and anti-fraud provisions.
El Salvador to open “bitcoin embassy” in the US, IMF cautions against increasing bitcoin exposure
El Salvador is opening a "Bitcoin Embassy" in Texas on various initiatives to promote the adoption of Bitcoin. However, the International Monetary Fund (IMF) has advised El Salvador to rethink its strategy of increasing Bitcoin exposure, citing concerns about the speculative nature of crypto markets and their potential impact on fiscal sustainability and consumer protection. Bitcoin has been considered a legal tender in El Salvador since 2021.
Abu Dhabi’s HUB71 launches $2 billion initiative to promote WEB3-based innovations
Hub71, Abu Dhabi's technology ecosystem, has recently launched a new initiative called "Hub71+ Digital Assets," with over US$2 billion in capital backing. The main objective of this project is to promote the development of Web3-based innovations, which include blockchain technology and metaverse applications. The program intends to offer Web3 startups access to various programs, initiatives, and partners, including corporate, government, and investment entities in global markets and the United Arab Emirates, as per Ambassador Milena Mayorga.