Kenya is preparing to extradite Nadeem Anjarwalla, a Binance executive wanted by Nigerian authorities for alleged involvement in tax evasion and a dramatic escape from custody. Anjarwalla was apprehended in Kenya over the weekend in a joint operation involving several agencies, including the EFCC, Nigeria Police Force, Kenya Police Service, FBI, and INTERPOL, following weeks of search efforts. He is expected to be extradited to Nigeria within the week to face trial on tax evasion charges, with the possibility of additional charges related to illegal passport use and escape from custody.

Anjarwalla, Binance Africa’s regional manager, along with another executive, Tigran Gambrayan, encountered legal issues in Nigeria in February due to their association with the crypto exchange. Anjarwalla evaded custody in March using a Kenyan passport and had been evading authorities until his recent capture.

This development adds to the ongoing tension between Binance and Nigerian authorities. Gambrayan, who has been detained since February, is currently facing trial for alleged tax evasion. However, the proceedings have faced delays, with the court adjourning the case twice due to issues with formally serving charges to the exchange. Binance CEO Richard Teng has expressed willingness to cooperate with Nigerian authorities, but specific efforts to secure the release of the detained executives remain undisclosed.

Similarly, Gambrayan’Kenya to Extradite Binance Executive Linked to Tax Evasion to Nigeria attempts to secure bail have encountered obstacles, with a federal high court in Abuja postponing his bail application hearing. He is presently held at the Kuje Correctional Center pending further legal proceedings.

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Welcome to “Epoch V” of Bitcoin. The fourth successful halving of Bitcoin occurred on April 20, marking a programmed reduction in the amount of new bitcoin entering circulation through mining. As celebrations ensue worldwide, attention turns to what lies ahead.

Coinciding with the halving was the launch of Runes, a protocol facilitating the creation of meme coins on Bitcoin. This launch saw hundreds of tokens introduced, contributing over $80 million in fees to bitcoin miners. This surge in trading activity has driven transaction costs on Bitcoin to over $70 on average, a staggering 1,395.8% increase over the trailing 30-day average, according to TokenTerminal.

Some foresee “Epoch V,” leading up to the next halving in 2028, as the period when Bitcoin layer 2 solutions like the Lightning Network will gain traction. Bitcoin fees hit an all-time high of $128 on April 20, prompting many to explore alternative solutions. Bitcoin Core developer Ava Chow stated, “High fee environments will prompt people to look into them,” referring to Lightning and other layer 2 options.

A recent Messari report emphasized the necessity of layer-2 solutions for Bitcoin amidst rising on-chain activity, signaling a shift from Bitcoin as merely “digital gold” to a platform for innovation.

The launch of the Ordinals protocol last year, enabling new data storage methods on Bitcoin’s smallest units (satoshis), has catalyzed this shift. BitVM allows off-chain computation, Babylon facilitates staking and earning yield on BTC, while layer 2s like Stacks and Merlin host decentralized apps and meme coins.

Post-halving, tokens associated with Bitcoin layer 2s have outperformed BTC. For instance, Elastos  rose 11%, SatoshiVM  climbed 5%, and Stacks  gained nearly 20% to $2.87, partly driven by the anticipated Nakamoto upgrade.

While market dynamics may drive action to Bitcoin’s secondary layers, challenges persist. Higher BTC fees may price out users with low balances from platforms like Lightning, necessitating workarounds such as custodial services. Concerns arise over the erosion of sovereignty and anonymity with custodial Lightning solutions.

This landscape reflects the legacy of the Blocksize Wars, where the decision to prioritize layer 2 scaling over block size increases set Bitcoin’s current trajectory.

As Chow remarks, the choice between block size and transaction size adjustments represents a fundamental divide in Bitcoin’s scaling debate, shaping its evolution to date.

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In a bid to prevent the illicit use of cryptocurrency for money laundering, Thailand’s Securities and Exchange Commission (SEC) announced plans to block local access to unauthorized crypto platforms. Investors are urged to withdraw funds from such platforms as authorities move to restrict their operations.

Following a meeting with a government committee on technology-related crimes, the SEC was tasked with identifying and submitting information on unauthorized digital asset service providers to the Ministry of Digital Economy and Society. Once approved by the courts, access to these platforms will be prohibited.

While specific criteria for disqualifying platforms were not disclosed, the SEC provided a verification website to help investors assess legitimacy. Blocking access aligns with efforts to combat criminal activity, drawing parallels with similar actions taken in India and the Philippines.

Previously, the SEC initiated legal proceedings against unauthorized exchanges of Binance and Bybit. The agency emphasizes the risks associated with unregulated operators, highlighting the lack of legal protection and the potential for fraud.

This crackdown follows recent crypto-friendly measures by Thai authorities, including the extension of VAT exemption on crypto trading gains and permission for local institutions to invest in U.S. spot bitcoin exchange-traded funds.

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The total supply of USD-pegged stablecoins has soared to $165 billion, reaching its highest level in almost two years as new tokens flood the market, intensifying competition. Ethena’s USDe stablecoin, with a market cap of around $2.4 billion, has contributed to this growth, stabilizing the market at its current level.

This milestone, achieved last Thursday, reflects a significant uptick in stablecoin supply since late June 2022, nearing the previous all-time high of over $180 billion. While Tether’s USDT and Circle’s USDC remain dominant, the stablecoin market is diversifying with new entrants. USDT maintains a commanding 70% market share, according to DeFiLlama data.

The emergence of Ethena’s stablecoin launched just over two months ago, and PayPal’s collaboration with Paxos for its stablecoin introduction in August 2023, have contributed to the expanding stablecoin landscape. Ripple’s recent announcement of its plans to launch a USD-pegged stablecoin further underscores the market’s growth potential. Ripple forecasts the total stablecoin market to skyrocket to $2.8 trillion by 2028.

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In the wake of the recent Bitcoin halving, miners are contemplating a transition towards artificial intelligence (AI) to potentially boost their revenue streams, according to a report by CoinShares.

The halving event, which occurred recently, is expected to significantly increase costs for miners, with electricity and overall production expenses nearly doubling.

To counter these rising costs, mining companies are exploring the potential of AI operations, leveraging energy-secure locations for potential higher returns. BitDigital (BTBT), Hive (HIVE), Hut 8 (HUT), TeraWulf (WULF), and Core Scientific (CORZ) are among the companies mentioned by CoinShares that are either already generating income from AI or have plans to do so.

The report suggests a trend where Bitcoin mining operations may migrate to stranded energy sites while investment in AI expands in more stable locations.

Pre-halving, the weighted average cash cost of production was approximately $29,500 per Bitcoin. Post-halving, this is projected to rise to about $53,000. Similarly, the average electricity cost of production per Bitcoin is expected to increase from around $16,300 to approximately $34,900.

CoinShares forecasts a potential rise in hash rate to 700 exahash by 2025. However, immediately after the halving, a 10% drop in hashrate is anticipated as miners shut down unprofitable machines. Hash prices are also expected to decline post-halving to $53 per hash/day.

Despite these challenges, miners are actively managing financial liabilities and using excess cash to pay down debt, indicating strategic financial planning amidst changing market dynamics.

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