As regulation takes center stage following the collapse of FTX, the U.S. Federal Trade Commission (FTC) has launched investigations into several unnamed crypto firms. These investigations pertain to deceptive or misleading crypto advertising. 

FTC spokeswoman Juliana Gruenwald Henderson said in a recent interview that the agency was “investigating several firms for possible misconduct concerning digital assets.”

Although no names were mentioned by Henderson, reports suggest that FTX is on the list. The scandal-plagued exchange spent hundreds of millions naming sports stadiums, sponsoring teams, and wooing celebrities.

The reports suggest that the investigations are linked to misleading advertising by crypto firms. In the past, the FTC has gone after companies that presented themselves as crypto-related but were allegedly nothing more than scams.

According to the FTC, federal law says that adverts “must be truthful, not misleading, and, when appropriate, backed by scientific evidence.”

The Federal Judge of the Southern District of New York overseeing the bankruptcy proceedings of Three Arrows Capital (3AC) has approved subpoenas for the co-founder of the crypto hedge fund.

The subpoenas mean 3AC liquidators have permission to demand communications, documents, and financial records related to the bankrupt firm from co-founders Kyle Davies and Su Zhu, along with other 3AC leadership.

In addition, everyone who received a subpoena will be required to give up all account information, seed phrases, and private keys relating to the digital and fiat assets of 3AC. These include details of securities, unregistered shares, and all assets.  

The court order issued on Tuesday, December 6th, grants the liquidators – advisory firm Teneo – access to the above-mentioned information from 2012, when the company was founded, until 2022, when it filed for Chapter 15 bankruptcy. 

The subpoenas labeled their recipients as “discovery targets.” This status gives them 14 days to comply as the liquidators aim to pin down assets of 3AC.

LGND.io, a blockchain-based e-commerce interactive platform, has announced a partnership with Warner Music Group and Polygon. The trio aims to develop a new music and collectibles platform.

The multi-year partnership will see the collaboration on an LGND Music project, a platform that will support “digital collectibles from any blockchain in a proprietary player.” LGND Music will launch in January 2023. 

As part of the partnership, select Warner Music Group artists will launch digital collectibles on the app and desktop platforms of LGND Music. Creators will also interact with fans via special content and curated experiences. 

LGND Music will be built on the Polygon Network, which offers lower gas fees and faster transactions. Users will “also be able to buy and fully own music tokens and easily get started with digital collectibles.”

The growth of Web3 music platforms could disrupt the traditional music industry. It offers artists opportunities to innovate and monetize their content.

The infamous hack group Lazarus Group has been at work again. This time they leveraged fake cryptocurrency apps as a lure to deliver a previously undocumented version of the AppleJeus malware. Their targets were crypto investment firms.

According to new findings from Volexity, a cybersecurity firm, and Microsoft, the Lazarus Group uses a crypto site and even Excel documents to infect systems and access them remotely.

Microsoft explained that the attacks were part of a more sophisticated scheme. The plan involved Lazarus’ members identifying themselves with fake profiles of OKX employees and joining VIP Telegram groups of their targets.

The targets were then added to another group and asked for feedback on an Excel document that compared OKX, Binance, and Huobi VIP fee structures. However, the files also invisibly sideloaded a malicious .dll used in the hacks.

Lazarus Group is a North Korean hacking group sanctioned by the U.S. government for stealing crypto. The funds are allegedly used to sponsor the country’s nuclear weapons program.

Fir Tree Capital Management, a New York-based hedge fund, is suing Grayscale Investments for information about its flashing product – Bitcoin Trust – that could be used to force changes to how the fund is run.

According to the December 6th complaint filed at the Delaware Court of Chancery, Grayscale could potentially have mismanaged the $10.7 billion Grayscale Bitcoin Trust (GBTC) fund. Fir Tree doesn’t want it converted into a spot ETF.

Fir Tree also wants Grayscale to lower its GBTC fees, introduce redemptions, and hand over documents relating to its relationship with the Digital Currency Group. 

According to the New York-based hedge fund, approximately 850,000 retail investors had been “harmed by Grayscale’s shareholder-unfriendly actions.” Additionally, Fir Tree claims Grayscale has refused to redeem shares as that would cut into profits.

Grayscale has maintained that converting the GBTC into a spot ETF will allow it to create and redeem shares.