OpenSea Joins the Ranks of SEC Targets: Industry Reacts with Outrage

OpenSea Joins the Ranks of SEC Targets: Industry Reacts with Outrage

The crypto community is up in arms after OpenSea, the leading NFT marketplace, was hit with a Wells notice from the US Securities and Exchange Commission (SEC).

The SEC is investigating whether NFTs sold on OpenSea should be classified as securities, a move that aligns with the agency's broader stance on cryptocurrencies. This latest action has sparked outrage and confusion among industry leaders.

Kraken co-founder Jesse Powell called the move "absurd," while billionaire investor Mark Cuban expressed his frustration with the SEC's actions. Coinbase CEO Brian Armstrong even joked about the SEC's tendency to target crypto companies.

The SEC's focus on NFTs highlights the ongoing regulatory uncertainty surrounding the cryptocurrency market. As the agency continues its crackdown, industry players are bracing for further challenges and potential legal battles.

MakerDAO Rebrands to Sky: Controversy Surrounds New Freeze Function

MakerDAO's rebrand to Sky and the introduction of the new USDS stablecoin have sparked controversy within the crypto community. While the freeze function aims to deter malicious actors, security experts raise concerns about its effectiveness and potential impact on decentralization.

Some argue that the freeze function compromises DeFi's core principles, while others believe it is necessary for compliance and security. The rebrand marks a significant shift for MakerDAO, and its success will depend on how the crypto community responds to these changes.

Crypto Hacks and Scams Surpass $1.2 Billion in 2024

Despite a significant drop in August, the crypto industry has suffered over $1.2 billion in losses due to hacks and scams this year.

While August saw a dramatic 95% decrease in losses compared to the previous month, the cumulative total for 2024 remains substantial. The majority of August's losses can be attributed to a single incident on the Ronin Network bridge, where $12 million was initially believed to be stolen but was later revealed to be a white hat operation.

This incident serves as a reminder of the ongoing security challenges facing the crypto industry, even as the frequency of large-scale attacks has decreased.

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