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• Dropbox is sunsetting its “Advanced Plan,” which offers unlimited storage to customers
• The firm cited energy-exhaustive activities like crypto and Chia mining as the reason for the decision.
• Under the new “Advanced Plan” with three licenses, customers will get 15 TB of storage shared by the team.
• Clients using less than 35TB can keep their storage for free, along with an additional 5TB of pooled storage.

Dropbox, a file hosting services company based in San Francisco, California, has announced that it will stop offering unlimited storage to its users after it found multiple instances of people using the offering for resource-exhaustive processes like cryptocurrency mining. The mining of digital assets like Bitcoin has attracted the attention of conglomerates and regulators for its increased energy requirements and effects on the environment

In a blog post on August 24, Dropbox confirmed the news, stating that it is moving to a metered storage policy on its “Advanced Plan.” Furthermore, the American firm confirmed that the vast majority of its customers need not take any action and will be able to keep their existing storage and more for up to five years at no additional charge.

Dropbox added that it had introduced the Advanced Plan, offering businesses unlimited access to data storage under its “as much space as you need” policy. The plan offered customers access to as much storage as they needed, “along with sophisticated admin, audit, security, and integration capabilities,” said the firm, while adding:

“Over time, we found a growing number of customers were buying Advanced subscriptions not to run a business or organization, but instead for purposes like crypto and Chia mining, unrelated individuals pooling storage for personal use cases, or even instances of reselling storage.”

Dropbox confirmed that crypto and China miners consume thousands of times more storage than its regular customers while noting that under its Advanced Plan, it sought to provide “as much storage as needed to run a legitimate business or organization, not to provide unlimited storage for any use case.”

The firm noted that it would be difficult to introduce a list of “acceptable” and “unacceptable” use cases for its Advanced Plan and that it would be a daunting task to enforce them at scale. Therefore, it has decided to sunset the “as much space as you need” policy and is now transitioning to a metered model.

Moreover, Dropbox confirmed that starting August 24, the new Advanced Plan with three active licenses will allow customers to receive 15TB of storage space shared by the team. Moreover, each additional active license will receive 5TB of storage

“Customers using less than 35TB of storage per license—over 99% of Advanced customers—will be able to keep the total amount of storage their team is using at the time they’re notified, plus an additional 5TB credit of pooled storage, for five years at no additional charge to their existing plan,” said Dropbox

As reported earlier by Bitnation, lawmakers in the United States have considered putting a ban on cryptocurrency mining, which could take a toll on the digital asset sector

• Yi took bribes to promote people in government service and help them win government contracts
• China currently bans crypto mining activities and crypto trading

Local sources in China have revealed that the Intermediate People’s Court of Hangzhou City has sentenced Xiao Yi, a government official, to life in prison for charges related to corruption and abuse of power for aiding a Bitcoin mining business valued at 2.4 billion Chinese yuan ($329 million).

Although the corruption charges are unrelated to crypto activities, they revolve around allegations of bribery from 2008 to 2021. Prosecutors accused Yi of abusing his powers by providing electricity and financial subsidies to Jiumu Group Genesis Technology, a company involved in Bitcoin mining, between 2017 and 2021. Jiumu consumed 10% of Fuzhou’s overall energy consumption from 2017 to 2020.

Yi reportedly committed these crimes while he served as secretary of the Fuzhou City Committee in Jiangxi Province, director of the region’s People’s Government Office in Beijing, and vice chairman of the Jiangxi Provincial Committee

According to the prosecution, Yi “covered up” the mining operation by ordering the appropriate departments to forge statistical data and manipulate the classification of electricity consumption

Prosecutors claim he used his connections and position to enrich himself, which was against national interest and caused great losses to the people of China. Yi reportedly accepted bribes to promote others and also help them win public projects. Interestingly, the former government official admitted the charges, turned over some of his property, and entered a guilty plea.

Since 2018, China has required local governments to help mining companies exit the country and has banned the development or operation of crypto mining activities. Although crypto ownership is not deemed a crime in China, the country forbids crypto transactions, fiat-to-crypto onboarding, etc.

• Elon Musk praised the pro-crypto Republican candidate for the 2024 US presidential elections, Vivek Ramaswamy.
• “He is a very promising candidate,” said the billionaire in an X post
• Ramaswamy recently asked his supporters to make the 2024 elections a referendum on fiat currency.”
• The Republican candidate also announced that he would accept donations in Bitcoin and unveiled a QR code.

Elon Musk, the founder and CEO of Tesla and SpaceX and the chairman and former CEO of X (formerly known as Twitter), has nothing but praises for a pro-crypto Republican candidate for the 2024 United States presidential elections. The entrepreneur, who is widely known for his remarks on US politics, cryptocurrencies, and AI, recently sang praise for the candidate.

In an X post, Elon Musk responded to a snippet of an interview with the candidate, Vivek Ramaswamy, on Tucker Carlson’s Tucker on Twitter podcast, which said that “Vivek Ramaswamy is the youngest-ever Republican presidential candidate.” The billionaire said that “He is a very promising candidate.”

Interestingly, Ramaswamy is well-known for his comments on cryptocurrencies and digital finance. He recently asked his supporters to make the 2024 elections a referendum on fiat currency.” Ramaswamy is one of the multiple Republican candidates that have come in support of Bitcoin and the digital asset sector, as opposed to the Joe Biden administration, which has waged a war against all cryptocurrencies except Bitcoin (BTC).

Elon Musk’s support for Ramaswamy caught the eye of the crypto community on X, which is now talking about the young Republican. Interestingly, at the Bitcoin 2023 conference in Miami, Ramaswamy said that he will accept Bitcoin for donations in his campaign, making him the second candidate to announce support for the world’s largest cryptocurrency in the 2024 presidential elections

He is a very promising candidate

— Elon Musk (@elonmusk) August 17, 2023

Additionally, after the Bitcoin conference, Ramaswamy also unveiled a QR code that would take donors to a portal for donations via Bitcoin. Moreover, for all the donors who donate within the $6,600 limit, they would be given an exclusive nonfungible token (NFT)

Interestingly, Elon Musk revealed in 2021 that his company Tesla holds a significant amount of Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE). The firm sold a part of its BTC holdings in 2022, but the rest is still intact. The billionaire is also optimistic about the future of Bitcoin, as reported earlier by Bitnation.

• A New Zealand parliamentary report has asked the government to take it slowly when it comes to crypto regulation.
• The Finance and Expenditure Committee of the New Zealand House of Representatives commissioned the report in 2021.
• The report asked lawmakers and regulatory agencies not to rush with crypto regulation at this time
• The parliament believes that the crypto sector is still in the early stages of development and that rapid changes might occur.

The New Zealand Parliament wants to take it slow when it comes to the regulation of the digital asset sector, which is one of the most volatile asset classes and is more prone to scams and exploits. Interestingly, in the United States and across the globe, the call for regulation of virtual assets has surged through the roof, with investors and blockchain businesses asking for clear guidelines and lawmakers stalling or adopting a regulation by enforcement approach

The parliamentary report was commissioned by the Finance and Expenditure Committee of the New Zealand House of Representatives in 2021 and was titled “Inquiry into the current and future nature, impact, and risks of cryptocurrencies.” The document is 99 pages long and has been co-written by a partner at the law firm MinterEllisonRuddWatts and a University of Auckland associate professor of commercial law.

The report recommends that the government of New Zealand and regulatory agencies “proceed carefully and do not design and implement a fully integrated and consistent regulatory framework for digital assets at this point in time,” because “it is early in the development of digital assets and blockchain.”

“We recommend that problems be addressed as they arise. We recommend that the government and regulators create coherent and consistent guidance on the treatment of digital assets under current law,” said the report

The report further asked the New Zealand government to adopt a “technologically neutral approach to regulation of the digital asset space, tailoring measures in relation to digital assets and related services and technology as required to deal with material risks associated with them.”

Additionally, the report also asks the Financial Markets Authority (FMA) to create a new class of assets for cryptocurrencies with a sandbox, and a new class of personal property. It also proposes that the FMA should lead a new Council of Financial Regulators subcommittee “to provide advice and a coordinated response to “issues facing the industry.”

As reported earlier by Bitnation, the regulation of enforcement tactics used by the United States Securities and Exchange Commission (SEC) against crypto firms has been widely criticized by entrepreneurs and lawmakers. Senator Cynthia Lummis recently said that creating a framework for the crypto industry is a top priority.

• The SEC seeks to question Terraform Labs co-founder Daniel Shin in South Korea
• The regulators seek to know about the relationship between Terraform Labs and Chai Corporation
• The regulator will respect documents from the firm related to the Chai Corporation.
• The two co-founders of Terraform Labs, Do Kwon and Shin, did not show any objection to the SEC’s requests.

The United States Securities and Exchange Commission (SEC) is set to question Daniel Shin, the co-founder of Terraform Labs, in South Korea. The collapse of the Terra eco triggered a domino effect in the crypto sector, resulting in the fall of some of the largest crypto firms like Celsius Network, Three Arrows Capital, and others

According to a motion filed on July 10 by the SEC and granted on August 16 by District Judge Jed Rakoff, the regulatory agency seeks to question the Terra co-founder and will request crucial documents from the Seoul-based payments provider Chai Corporation that Shin also created

The SEC aims to gain knowledge of the role Shin played at the Chat Corporation as per the July 10 motion and how it integrated the Terra eco. Overall, the regulator seeks to know what the relationship was between Terraform Labs and the Chai Corporation. Interestingly, the two firms were reported to have been working closely

However, Chai separated from Terraform Labs, and the SEC wants to know why the firm did so. Chai was founded by Do Kwon and Daniel Shin in mid-2019 and shared offices and staff with Terraform until the two firms split in 2020. While the two co-founders did not raise a dispute regarding the demands made by the regulator, they presented their own questions and document requests.

Recently, the SEC filed a lawsuit against Terraform Labs and Do Kwon, claiming that the cryptocurrencies TerraClassicUSD (USTC) and Terra Luna Classic (LUNC), formerly Terra (LUNA) and TerraUSD (UST), were fraudulent. The regulator also claimed that the firm falsely claimed that Chai used the Terra blockchain to process and settle transactions.

Recently, the interim CEO of Terraform Labs, Chris Amani, said that there is a very ‘big hill’ in his path to progress and rejuvenate the blockchain project. Any development activity is severely affected by allegations and lawsuits brought by regulators against Do Kwon. “Every time we would make a little progress, there would be some accusation or something that would derail us,” he said.

As reported earlier by Bitnation, the SEC has been granted the approval to appeal the decision made by Judge Analisa Torres in the XRP lawsuit, and as a result, the price of Bitcoin (BTC) has fallen severely.

• Cryptocurrency custodian BitGo has raised $100 million in a new Series C funding round
• The firm is valued at $1.75 billion after receiving funding from new investors based in the US and Asia.
• The funds will be utilized to make strategic acquisitions and expand the firm’s services globally.
• The CEO of BitGo noted that it is “definitely a rough market” due to regulatory uncertainty.

BitGo, a digital asset trust firm that is based in Palo Alto, California, has announced a Series C funding round, and as per CEO Mike Belshe, the new round featured entirely new investors from the United States and Asia. This confirms not very long after the crypto custodian lost in a legal battle against Galaxy Digital, a digital asset management firm

As per an August 16 report from Bloomberg, BitGo is now valued at $1.75 billion after raising $100 million from unnamed investors in the Series C funding round. It is crucial to note that the funds will be utilized to make strategic acquisitions and expand the firm’s secure and regulated custody, wallet, and infrastructure solutions globally

Interestingly, BitGo is known for securing clients’ assets by protecting private keys, sometimes in physical vaults. It is currently the custodian for the creditors of the bankrupt crypto exchange FTX, founded by Sam Bankman-Fried, also known as SBF in the crypto sector, along with financial services firm Swan Bitcoin, blockchain developer Mysten Labs Inc., and apparel giant Nike Inc.

On the other hand, the CEO of BitGo noted that it is “definitely a rough market,” adding that his firm’s focus on gaining regulatory licenses and approvals has proved beneficial amid an uncertain time for the crypto sector in the United States. Regulators are currently involved in a debate over whether to classify digital assets as commodities or as securities, with the Securities and Exchange Commission (SEC) emphasizing the latter.

Belshe said that “regulatory safety is just on everybody’s minds right now,” while adding:

“Not only are we seeing growing demand for regulated custody solutions in the United States, but we’re also seeing the demand on a global scale.”

While the BitGo utive refrained from revealing the names of its new investors, Belshe did reveal that some of the investors were not part of the crypto sector. More importantly, the firm’s previous investors include Goldman Sachs Group Inc., DRW Holdings, and Galaxy Digital Ventures.

As reported earlier by Bitnation, BitGo was eyeing the acquisition of Prime Trust but took a U-turn, and the latter has now filed for Chapter 11 bankruptcy.

• The CEO of crypto-friendly bank, Silvergate will be departing from the firm along with two other utives.
• Chief legal officer John Bonino left on Aug. 15, and chief financial officer Antonio Martino will leave on Sept. 30.
• The three utives are not entitled to any compensation post departure but will be provided with severance.
• The bank had been operating since 1988 and started providing its services to crypto in 2016.

Alan Lane, the CEO of a prominent crypto-friendly banking institution based in San Diego, Silvergate, has announced his departure from the firm amid the ongoing liquidation process at the firm. Along with the former CEO, two more key utives are expected to leave as the banking firm continues to wind down operations that cater to fintech and blockchain businesses

According to a filing submitted with the United States Securities and Exchange Commission (SEC) on August 15, the chief legal officer at Silvergate, John Bonino, departed the firm the very same day of the filing. Moreover, Antonio Martino, chief financial officer of the company, will be departing from his role on September 30.

In the filing, the troubled banking firm said that letting go of the three utives was planned previously when Silvergate announced that it would voluntarily shut down operations and liquidate Silvergate Bank. It is crucial to note that the bank has been operating since 1988 and started providing its services to the digital asset sector in 2016

The filing also confirmed that three utives are not entitled to any compensation after their departure, but they will be provided with severance as a part of their employment agreement with Silvergate Bank. Interestingly, the confirmation of the departures comes at a time when the banking firm is facing a number of lawsuits

Silvergate and it’s now former CEO have been named in separate lawsuits for their involvement in the bankruptcy of the multi-billion dollar crypto exchange FTX under the leadership of Sam Bankman-Fried, also known as SBF in the industry

Additionally, the banking firm was also sued by Texas-based Word of God Church, alleging that Silvergate used $25 million of church deposits to participate in FTX’s “fraudulent” scheme” while adding that the firm and its now former CEO had “unparalleled knowledge of the rampant fraud and corporate malfeasance.”

Another lawsuit claimed that the firm did not practice due diligence on the firms that it accepted as its clients, for example, FTX, Alameda Research, and North Dimension

As reported earlier by Bitnation, FDIC Chair Martin Gruenberg stated that the crypto-friendly bank suffered due to its exposure to cryptocurrencies.