Latest news with #EthereumFoundation
Yahoo
15 hours ago
- Business
- Yahoo
The Roman Storm Tornado Cash Trial Explained
The Roman Storm Tornado Cash Trial Explained originally appeared on TheStreet. Tornado Cash founder Roman Storm is currently battling with the U.S. government in a heated courtroom trial to avoid decades in prison time. And unlike other high-profile crypto defendants, Storm has attracted a support from a powerful contingent, including the Ethereum Foundation and Ethereum co-founder Vitalik Buterin himself. Raising more than $3 million dollars and counting, Storm and his defense team are putting up a serious fight as they now take over the floor to present to the jury their side of the case in the second half of the trial. Coinage headed down to the New York courtroom this week to uncover what makes the trial of Roman Storm so unique — and why it's arguably the most important trial for crypto yet. First off, this isn't a case centering on simple fraud for once. It's not as clear cut as the trial of FTX founder Sam Bankman-Fried, nor Celsius founder Alex Mashinsky — which prosecutors easily navigated to demonstrate to jurors those founders harmed customers. Instead, in the case of Roman Storm, the government is going after a crypto founder for the tool he built to let users protect their privacy on the blockchain. Tornado Cash was a money mixer Storm and his co-founders launched in 2019. It allowed anyone to deposit crypto from a public address, pooled those assets, and then let users withdraw on the other end to a fresh wallet without anyone being able to trace whose funds were whose. Proponents said it restored much needed privacy for transactions onchain. Critics said it was a blatant money laundering tool. That distinction might not matter if it's just a few thousand users making small-time transactions in the low double-digit figures. But when North Korea's elite hacking team the Lazarus Group started used Tornado Cash to launder some of the more than $600 million it stole in one of the largest crypto hacks of all-time? Yeah, the government started to care. The reason for that is because the U.S. has a lot of rules around who you can do business with. Particularly for financial players, they typically follow these rules because the penalties of not doing so are extreme. Not only can fines be in the billions of dollars for banks who don't block drug traffickers or other state-sanctioned actors, they could be supporting regimes the U.S. is actively working against. Perhaps it's no surprise then that the government brought this case against Storm, hitting him with a trio of charges — including conspiracy to commit money laundering, conspiracy to operate an unlicensed money transferring business, and conspiracy to violate the International Emergency Economic Powers Act (the law that makes it illegal to work with America's sanctioned enemies like North Korea.) But from a use case perspective, it's hard to argue something like Tornado Cash isn't needed to protect privacy onchain. Even your credit card transactions aren't publicly broadcast to everyone around the world — and as crypto kidnappings continue to rise, it doesn't really seem safe letting everyone know exactly how much wealth you're sitting on. It's also why the idea for Tornado Cash came directly from Ethereum co-founder Vitalik Buterin himself. He and Storm chatted about the idea of privacy onchain at a conference in New York before Storm and his co-founders launched the project — and indeed since, Ethereum's future roadmap has become chock-full with upcoming privacy features. Perhaps it's obvious, then, why this case matters to so many in the Ethereum community. The reason for that is not just privacy — but also the inner workings of how the U.S. government has gone about prosecuting this case. They are going after Storm for running an unlicensed money transferring business. But, importantly, Tornado Cash as a service never technically took direct custody of users' funds. Their immutable smart contracts merely facilitated users to take these actions themselves, if they so chose. But as a crypto journalist who has seen plenty of these defenses that lean heavily on a firm understanding of a narrow reading of the law and the technology at play, I'm not sure the crypto community should be so optimistic. That is, the government usually does a very good job of making someone look guilty — and they usually don't pursue cases they think they will lose. As I sat in the courtroom this week, I saw that playing out yet again. The prosecutors read through the same conversations they highlighted in their earlier indictment. They highlighted the purposefully unsuccessful attempts by Storm and his co-founders to block North Korea's sanctioned wallet from interacting with their website's front end, only to leave access to the money mixing smart contract elsewhere completely wide open. But that's the thing about immutable smart contracts like Tornado Cash. Once built, it's very hard to stop bad actors from using it. The government's case is that Storm probably should have thought of those consequences before building Tornado Cash. Or, perhaps, should've definitely done more once he and his co-founders became aware that the overwhelming majority of activity on their tool had mostly become North Korea laundering stolen funds. But those in crypto are quick to point out that that is simply not how permissionless systems or smart contracts work. Regardless, if Storm wins his case, the 'privacy above all else' narrative may severely undermine America's ability to enforce its financial leverage on bad actors and make enforcing sanctions nearly impossible. It's also why the question posed to Roman Storm by crypto journalist Eleanor Terrett on the Crypto in America podcast was such a good one. Terrett asked Storm before the trial began point blank: 'Do you believe the right to privacy outweighs concerns about national security?' Storm answered: 'My personal beliefs I don't think matter much at this point. I only believe that developers should freely write code without consequences for misusage by third parties.' Currently Coinage Media is running an onchain DAO poll for members to have their voice heard on how they would rule in the case. As for the real trial, jurors could be asked to deliver a verdict as soon as this coming week as the trial wraps up in New York. The Roman Storm Tornado Cash Trial Explained first appeared on TheStreet on Jul 28, 2025 This story was originally reported by TheStreet on Jul 28, 2025, where it first appeared.
Yahoo
5 days ago
- Business
- Yahoo
In a First for the Industry, SharpLink Buys Almost 75,000 Ethereum. Here's Why Investors Should Take Note.
Key Points SharpLink is leading the way in building an Ethereum corporate treasury. Companies can earn yield by staking their Ethereum holdings, which also adds to the network's security. Ethereum has rallied over 110% during the past three months. 10 stocks we like better than Ethereum › Ethereum (CRYPTO: ETH) is on fire. Its price has risen by 110% during the past three months. One major driver is optimism about the impact of the Genius Act, which sets a framework for stablecoins and is the first piece of crypto legislation to become law in the U.S. Many stablecoins are built on Ethereum's blockchain, and any industry growth could translate to more activity on its network. Another positive tailwind is that companies are starting to add Ethereum to their corporate treasuries. SharpLink Gaming (NASDAQ: SBET) is leading the way, purchasing 74,656 Ethereum coins between July 7 and July 13, taking its holdings to 280,706 -- worth more than $1 billion at time of writing (July 21). It now holds more of the popular crypto than any other entity in the world, including the Ethereum Foundation. Why investors should take note In recent years, there's been a significant uptick in the number of companies adding Bitcoin (CRYPTO: BTC) to their corporate treasuries. Changes in accounting rules mean companies can record the fair value of their crypto assets on their balance sheets. (Previously, crypto was recorded as an intangible asset, valued at its lowest price during the holding period.) However, until recently, businesses were more interested in Bitcoin than Ethereum. SharpLink, an online gaming and sports betting company, is ringing in the changes. In May, it announced plans to develop an Ethereum treasury and appointed Joseph Lubin, one of Ethereum's co-founders, as chairman. The company says its Ethereum acquisition is more than a trade; "it is a commitment to our long-term vision." SharpLink funded its Ethereum purchases by issuing equity. It recently raised about $425 million through a private investment in public equity (PIPE) funding round, as well as an additional $64 million in at-the-market (ATM) sales. SharpLink has already staked almost all of its holdings and plans to reinvest those gains. Staking not only generates yield but also contributes to the health of the Ethereum ecosystem. Here are two reasons the move could be noteworthy for crypto investors: 1. Other companies may follow suit According to more than 150 public companies now hold Bitcoin. MicroStrategy (NASDAQ: MSTR) (now doing business as Strategy) leads the way with more than 600,000 bitcoins on its books. The accumulation has been one of several factors that's driven Bitcoin's price to new highs this year, though the longer-term impact remains to be seen. A couple of companies have already joined SharpLink in buying Ethereum, including Bit Digital (NASDAQ: BTBT), BitMine (NYSEMKT: BMNR), and GameSquare (NASDAQ: GAME). The Securities and Exchange Commission (SEC) said in May that staking cryptos are not automatically securities. This, alongside the potential of increased regulatory clarity from Washington, has paved the way for companies to acquire Ethereum. That, in turn, could have a positive impact on prices. 2. It adds stability to the Ethereum network The big difference between Bitcoin and Ethereum corporate treasuries is that companies can stake Ethereum. That's great for the companies because they are not dependent on price increases alone to generate returns. One of the concerns about Bitcoin treasury companies is that they may find they are overextended and be forced to sell at a loss if the price falls dramatically. According to Galaxy Digital (NASDAQ: GLXY), companies that have bought Ethereum have done so by issuing equity in a manner similar to SharpLink. That means there's less risk of a spiral, where falling prices trigger forced corporate sales and prices fall even further. Moreover, by staking Ethereum, these corporate holders help to keep the network secure. Crypto staking involves locking up tokens to act as validators on a network, verifying new blocks on the chain. The more staked Ethereum, the more resistant the network is to hackers. Coinbase (NASDAQ: COIN) estimates that about 30% of Ethereum is currently staked. Could Ethereum hit a new all-time high? Bitcoin has surged since the election, repeatedly setting new highs. In contrast, Ethereum has struggled to break the $4,000 barrier, let alone surpass its 2021 high of almost $4,900. That appears to be changing, as a combination of corporate and institutional accumulation, shifting regulatory tides, and improving sentiment are all driving an Ethereum rally. SharpLink's acquire-and-stake strategy has already gained traction with a couple of companies. Analysts predict that this is only the beginning, particularly as lawmakers remove some of the compliance roadblocks. SharpLink may have created a template that other companies can follow. There are no guarantees in what remains a volatile asset class, and some investors have raised concerns about centralization because a single entity has so much control. Nonetheless, in the short term, it seems as if Ethereum's recent momentum still has a way to run. Should you buy stock in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. In a First for the Industry, SharpLink Buys Almost 75,000 Ethereum. Here's Why Investors Should Take Note. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
6 days ago
- Business
- Globe and Mail
SharpLink Just Bought 10,000 Ethereum and Sent Its Stock Soaring. Here's What Investors Need to Know.
Key Points SharpLink Gaming has transformed into an Ethereum treasury company with one primary purpose: Buy as much Ethereum as quickly as it can. SharpLink is now the largest corporate holder of Ethereum in the world, with plans to hold 1% of all Ethereum in circulation. While SharpLink stock is still up 370% for the year, some of the initial enthusiasm appears to be cooling as new competitors appear. 10 stocks we like better than Ethereum › On July 11, SharpLink Gaming (NASDAQ: SBET) purchased 10,000 Ethereum (CRYPTO: ETH) from the Ethereum Foundation, marking the largest-ever direct Ethereum purchase by a publicly traded company. At today's prices, that Ethereum is now worth an estimated $36 million. But it's not just the size of the deal that has investors abuzz. It's also the fact that SharpLink has gone all-in on its new Ethereum buying strategy, even going so far as to add Joe Lubin, one of the co-founders of Ethereum, as its chairman. Perhaps not surprisingly, the price of SharpLink stock is now up 370% for the year. Here's what you need to know. SharpLink goes all-in on Ethereum In the span of just two months, SharpLink Gaming has turned its business model upside down and inside out. Until May 2025, the company was an affiliate marketer for sportsbooks and online casino operators. Hence the ticker symbol featuring the word "bet." But, at the very end of May, the company announced that it would raise as much as $1 billion from investors in order to purchase Ethereum. The average price for the Ethereum purchased from the Ethereum Foundation was just $2,572. So, with the current price now $3,600, the company has already made a huge profit on this purchase. The company immediately went back into the market, and has been steadily buying more Ethereum throughout July. In fact, it just announced that it will now buy $6 billion worth of Ethereum, a mammoth increase from the $1 billion originally proposed. The ultimate goal is to build its treasury to 1 million. Currently, the company holds over 280,000 tokens in its treasury, easily making it the largest corporate holder of Ethereum in the world. It even holds more Ethereum than the Ethereum Foundation. If it manages to boost its holdings to 1 million Ethereum as planned, then it would control just under 1% of all Ethereum in circulation. What investors need to know All of this buying is part of a broader strategy designed to transform SharpLink Gaming into a powerful Ethereum treasury company. Over time, the company will shed its betting and casino marketing operations, and focus instead on buying Ethereum and supporting the Ethereum ecosystem. This is the same strategy originally developed for Bitcoin (CRYPTO: BTC) by MicroStrategy (NASDAQ: MSTR), now doing business as Strategy. Over a five-year period, Strategy has become the largest corporate holder of Bitcoin in the world. Its stock price has been absolutely on fire as a result. Over the past five years, the stock price of Strategy is up a head-spinning 3,715%. So you can see what's going on here. The goal of SharpLink is to become "the Strategy of Ethereum." There are several publicly traded companies vying for this title, but it now looks like SharpLink Gaming has the inside track. Not only does it own more Ethereum than anyone else, it also has Ethereum rock star Joe Lubin as chairman. Is SharpLink a buy? Based on the above, the obvious conclusion would appear to be that SharpLink Gaming is a strong buy. As soon as the company purchased the 10,000 tokens, for example, its stock price immediately spiked by 50%. For the year, the company's stock is up 370%. What's not to like? Unfortunately, there's something about SharpLink that the market doesn't like. The company's stock is actually down more than 50% since the end of May, when it first embarked on its Ethereum journey. If you take a quick look at the company's stock chart, you'll see what's going on here. Intense investor enthusiasm has been followed by intense investor disappointment. Right now, the market seems to be having a hard time valuing SharpLink. There are several problems here. The first and most glaring one is that SharpLink is a money-losing operation. When the company last reported earnings, revenue was down 24% year over year. And net profit was down 110%. And its stock price had been going nowhere fast for months. So, in some ways, this new push into Ethereum feels like a desperation move. The second problem is that there are other companies also racing to become "the Strategy of Ethereum." The hot name that everyone is talking about right now is Bitmine Immersion Technologies (NYSEMKT: BMNR), a Bitcoin mining company that is transforming into an Ethereum treasury company with the support of tech billionaire Peter Thiel. So I'm not quite ready to pull the trigger on SharpLink Gaming. I'd much rather buy Ethereum directly, and take my chances there. There are fewer variables to worry about, and less concern about the arrival of new deep-pocketed competitors in the Ethereum treasury company game. Should you invest $1,000 in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
6 days ago
- Business
- Yahoo
SharpLink closes in on Ethereum Foundation's $725m Ether stash
SharpLink Gaming, a publicly listed sports and online casino marketing company, could soon become the largest holder of Ethereum. SharpLink is buying 'tens of millions of dollars' of Ethereum every day, Ethereum co-founder Joe Lubin said Tuesday. Lubin leads Consensys, an Ethereum software company, and is the chair of SharpLink's board of directors. At its current pace, SharpLink will soon surpass the Ethereum Foundation as the largest corporate holder of the blockchain's native cryptocurrency. The Foundation sits on a $725 million trove of the cryptocurrency. As of Thursday, SharpLink had $612 million. 'We are accumulating more and more consistently — we're able to acquire tens of millions of dollars in Ether a day,' Lubin told CNBC. A new playbook It's a sudden, massive bet on crypto. And it's a bet that has become popular with small, publicly-traded companies. SharpLink CEO Rob Phythian announced the company's 'expansion beyond our core business' in May. The company sold about $425 million in stock to a group of investors that included Consensys and said it would use the money to purchase Ethereum, which would 'serve as the Company's primary treasury reserve asset.' It's a move that mirrors that of Strategy, a software company that has amassed $67 billion worth of Bitcoin since 2020. Lubin told DL News in June that Ethereum's underperformance relative to Bitcoin and Solana inspired him to copy Strategy's playbook. In the four days following SharpLink's announcement, its shares soared 2,700%, reaching a high of $124 on May 30. But its price dropped in the following days. It crashed another 75% after submitting an SEC filing that allowed insiders to sell shares. Lubin said on X in June that the filing was standard procedure and that neither he nor Consensys has sold any shares. On Tuesday CNBC asked Lubin about the state of Ethereum and its underperformance relative to Bitcoin. Lubin said he believes all of the activity on the internet will eventually migrate to blockchains and that Ethereum is best positioned to benefit. The SharpLink strategy? SharpLink raises money to purchase Ethereum by selling shares. The company said on Tuesday it raised $64 million between June 28 and July 4, of which $37 million will be used to acquire additional Ethereum. SharpLink also stated the entirety of its Ethereum holdings have been deployed into staking and restaking protocols to earn yield. The company has earned 322 Ethereum from staking and restaking since June 2. The Strategic ETH Reserve website tracks all entities holding more than 100 Ethereum. As of Thursday, 46 entities hold more than 1.3 million Ethereum worth over $3.6 billion. The top five holders in descending order are the Ethereum Foundation, SharpLink, PulseChain, Coinbase, and the Golem Foundation. After falling below $10 on June 13, SharpLink stock has since recovered to $18. Meanwhile, Ethereum hit $2,967 on Thursday, its highest value since early February. Zachary Rampone is a DeFi correspondent at DL News. Have a tip? Contact him at zrampone@
Yahoo
6 days ago
- Business
- Yahoo
SharpLink Just Bought 10,000 Ethereum and Sent Its Stock Soaring. Here's What Investors Need to Know.
Key Points SharpLink Gaming has transformed into an Ethereum treasury company with one primary purpose: Buy as much Ethereum as quickly as it can. SharpLink is now the largest corporate holder of Ethereum in the world, with plans to hold 1% of all Ethereum in circulation. While SharpLink stock is still up 370% for the year, some of the initial enthusiasm appears to be cooling as new competitors appear. 10 stocks we like better than Ethereum › On July 11, SharpLink Gaming (NASDAQ: SBET) purchased 10,000 Ethereum (CRYPTO: ETH) from the Ethereum Foundation, marking the largest-ever direct Ethereum purchase by a publicly traded company. At today's prices, that Ethereum is now worth an estimated $36 million. But it's not just the size of the deal that has investors abuzz. It's also the fact that SharpLink has gone all-in on its new Ethereum buying strategy, even going so far as to add Joe Lubin, one of the co-founders of Ethereum, as its chairman. Perhaps not surprisingly, the price of SharpLink stock is now up 370% for the year. Here's what you need to know. SharpLink goes all-in on Ethereum In the span of just two months, SharpLink Gaming has turned its business model upside down and inside out. Until May 2025, the company was an affiliate marketer for sportsbooks and online casino operators. Hence the ticker symbol featuring the word "bet." But, at the very end of May, the company announced that it would raise as much as $1 billion from investors in order to purchase Ethereum. The average price for the Ethereum purchased from the Ethereum Foundation was just $2,572. So, with the current price now $3,600, the company has already made a huge profit on this purchase. The company immediately went back into the market, and has been steadily buying more Ethereum throughout July. In fact, it just announced that it will now buy $6 billion worth of Ethereum, a mammoth increase from the $1 billion originally proposed. The ultimate goal is to build its treasury to 1 million. Currently, the company holds over 280,000 tokens in its treasury, easily making it the largest corporate holder of Ethereum in the world. It even holds more Ethereum than the Ethereum Foundation. If it manages to boost its holdings to 1 million Ethereum as planned, then it would control just under 1% of all Ethereum in circulation. What investors need to know All of this buying is part of a broader strategy designed to transform SharpLink Gaming into a powerful Ethereum treasury company. Over time, the company will shed its betting and casino marketing operations, and focus instead on buying Ethereum and supporting the Ethereum ecosystem. This is the same strategy originally developed for Bitcoin (CRYPTO: BTC) by MicroStrategy (NASDAQ: MSTR), now doing business as Strategy. Over a five-year period, Strategy has become the largest corporate holder of Bitcoin in the world. Its stock price has been absolutely on fire as a result. Over the past five years, the stock price of Strategy is up a head-spinning 3,715%. So you can see what's going on here. The goal of SharpLink is to become "the Strategy of Ethereum." There are several publicly traded companies vying for this title, but it now looks like SharpLink Gaming has the inside track. Not only does it own more Ethereum than anyone else, it also has Ethereum rock star Joe Lubin as chairman. Is SharpLink a buy? Based on the above, the obvious conclusion would appear to be that SharpLink Gaming is a strong buy. As soon as the company purchased the 10,000 tokens, for example, its stock price immediately spiked by 50%. For the year, the company's stock is up 370%. What's not to like? Unfortunately, there's something about SharpLink that the market doesn't like. The company's stock is actually down more than 50% since the end of May, when it first embarked on its Ethereum journey. If you take a quick look at the company's stock chart, you'll see what's going on here. Intense investor enthusiasm has been followed by intense investor disappointment. Right now, the market seems to be having a hard time valuing SharpLink. There are several problems here. The first and most glaring one is that SharpLink is a money-losing operation. When the company last reported earnings, revenue was down 24% year over year. And net profit was down 110%. And its stock price had been going nowhere fast for months. So, in some ways, this new push into Ethereum feels like a desperation move. The second problem is that there are other companies also racing to become "the Strategy of Ethereum." The hot name that everyone is talking about right now is Bitmine Immersion Technologies (NYSEMKT: BMNR), a Bitcoin mining company that is transforming into an Ethereum treasury company with the support of tech billionaire Peter Thiel. So I'm not quite ready to pull the trigger on SharpLink Gaming. I'd much rather buy Ethereum directly, and take my chances there. There are fewer variables to worry about, and less concern about the arrival of new deep-pocketed competitors in the Ethereum treasury company game. Should you invest $1,000 in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. SharpLink Just Bought 10,000 Ethereum and Sent Its Stock Soaring. Here's What Investors Need to Know. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
