Summary
TLDR: The Federal Reserve won a lawsuit against Custodia Bank, stating they are not obligated to grant master account access to all eligible institutions. Custodia is considering their options, including an appeal. The Tornado Cash developer faces a 64-month sentence in the Netherlands, and the service has been accused of laundering over $7 billion in crypto. Farcaster, a decentralized social media protocol, has reportedly reached a $1 billion valuation in a new funding round. Arthur Hayes argues that memecoins have value in the crypto space.
Key Points
1. The Federal Reserve is not obligated to grant master account access and membership to all eligible institutions, as confirmed by a judge in the Custodia Bank lawsuit.
2. Custodia’s application for master account access was denied in early 2023, leading to a legal battle with the Federal Reserve. Despite considering their options, an appeal is not off the table for Custodia.
3. Tornado Cash developers are facing legal challenges, with Dutch prosecutors seeking a 64-month jail sentence for the developer. The service has been accused of allowing money laundering, leading to sanctions from the Treasury in 2022.