The American entity of leading cryptocurrency exchange Binance has updated its terms to reflect the U.S. dollar funds in their wallets on the exchange are no longer protected by deposit insurance from the Federal Deposit Insurance Corporation (FDIC). The exchange also halted U.S. dollar withdrawals.

Reddit has revealed that it’s phasing out its blockchain-based Community Points, which are different blockchain-based tokens distributed to users of its r/CryptoCurrency, r/Ethtrader, and r/FortniteBR communities.

The collapsed cryptocurrency exchange FTX has proposed a revised plan to reimburse creditors up to 90% of their holdings that were retained on the platform prior to its financial downfall last November.

Top stories in the Crypto Roundup today:

• Binance.US Drops FDIC Protection, Halts Dollar Withdrawals
• Reddit to Shut Down Blockchain-Based Community Points Feature
• FTX Offers Up to 90% Reimbursement to Creditors in Revised Plan
• Grayscale’s GBTC Discount Narrows to Lowest Level Since December 2021

Binance.US Drops FDIC Protection, Halts Dollar Withdrawals

The American entity of leading cryptocurrency exchange Binance has updated its terms to reflect the U.S. dollar funds in their wallets on the exchange are no longer protected by deposit insurance from the Federal Deposit Insurance Corporation (FDIC). The exchange also halted U.S. dollar withdrawals.

Dollar deposits were suspended on the exchange in early June, after the U.S. Securities and Exchange Commission’s (SEC) “extremely aggressive and intimidating tactics” left banking partners reluctant to engage with the crypto sector.

In an email on the recently updated terms, the cryptocurrency exchange said:

"In the event that customers wish to withdraw U.S. dollar funds from their account, they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.”

Last month, Binance also lost its euro payments partner.

Reddit to Shut Down Blockchain-Based Community Points Feature

Reddit has revealed that it’s phasing out its blockchain-based Community Points, which are different blockchain-based tokens distributed to users of its r/CryptoCurrency, r/Ethtrader, and r/FortniteBR communities.

The move, which was announced by a Reddit employee on the platform, led to a significant sell-off of the associated tokens – which include r/CryptoCurrency’s Moons, r/FortniteBR’s Bricks, and r/Ethtrader’s Donuts. Some Reddit users flagged transactions occurring shortly before the announcement they believed were suspicious.

Community Points will be discontinued by November 8, with Reddit’s announcement citing an inability to scale this feature extensively across the platform as the reason behind its closure, as well as a regulatory environment that has “added to scalability limitations.”

Per Reddit, the Community Points feature “wouldn’t migrate well” to the updated platform experience “without an outsized commitment to resources.” The firm is instead now working on the newly launched Contributor Program, letting users turn Reddit gold into real money.

The Community Points feature was launched back in 2020 and rewarded high-quality posters through Ethereum-based tokens that could be spent on badges and emojis. Users were also able to withdraw and trade the tokens on exchanges.

FTX Offers Up to 90% Reimbursement to Creditors in Revised Plan

The collapsed cryptocurrency exchange FTX has proposed a revised plan to reimburse creditors up to 90% of their holdings that were retained on the platform prior to its financial downfall last November.

The group of debtors currently overseeing the bankruptcy process is set to officially submit the revised plan to a U.S. Bankruptcy Court for examination by December 16 of this year.

The debtors propose splitting the missing funds that belong to FTX’s users into three groups based on the situation when the Chapter 11 cases began: Assets that were set aside for FTX.com customers; Assets that were for FTX.US customers; and a “General Pool” of other assets.

The proposal adds that customers with a preference settlement amount below $250,000 can agree to the settlement with no reduction in their claim or payment, with preference settlement constituting 15% of customer withdrawals from the exchange made nine days before it collapsed.

Creditors would also receive a "Shortfall Claim" against a general pool reflecting the approximated value of assets absent from their exchange – projected to be close to $9 billion for FTX.com and $166 million for FTX.US, the U.S. subsidiary of the exchange.

Factors including taxes, government claims, and price fluctuations could hinder recoveries. Moreover, debtors may leave out customers from the settlement who may have been aware of the misuse of customer funds, or those who changed their KYC information to facilitate withdrawals when they were halted.

Grayscale’s GBTC Discount Narrows to Lowest Level Since December 2021

The discount on Grayscale's $GBTC keeps diminishing, having dropped by 14.8% in October - marking its lowest point since December 2021.

This translates into a 30.4% rise in the trust’s net asset value.

State of the Crypto by Top Tier Exchange Volume

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