SEC Backtracks in Debt Box Lawsuit Drama!

Here's what we've got for you today:

• SEC Intends to Drop Case Against Debt Box After Court Challenge

• Bitcoin ETFs Mark Turnaround with Net Inflows, Boosting Bitcoin Prices

• Vitalik Buterin Warns Devs About Adding AI to Blockchain

• Ethereum’s Dencun Upgrade Goes Live on Sepolia Testnet

⚖️ SEC Intends to Drop Case Against Debt Box After Court Challenge

In its lawsuit against Debt Box, the SEC ended up under fire and is facing penalties for misrepresentation of facts.

• The SEC filed to withdraw its lawsuit against Debt Box in a Utah District Court on Jan. 30, seeking dismissal without prejudice.

• Debt Box's legal team sharply criticized the SEC for allegedly constructing a false narrative in the handling of the case.

• The initial lawsuit charged Debt Box with perpetrating a $50 million fraud through a cryptocurrency scheme, posing as a software mining license provider.

🪙 Bitcoin ETFs Mark Turnaround with Net Inflows, Boosting Bitcoin Prices

The Spot Bitcoin Exchange-Traded Funds (ETFs) recently experienced a positive shift, recording their first net inflows in a week.

• On Monday, the 10 spot Bitcoin ETFs experienced their first net inflows in a week.

• The ETFs saw an addition of approximately 4,200 Bitcoins, valued at around $183 million, which is a stark contrast to the previous week's continuous outflows, where about 20,000 Bitcoins were withdrawn between Jan. 23 and Jan. 26.

• Bitcoin's price, which had been declining and fell below $39,000, was able to surge to a high of $43,900 on Monday.

❗️ Vitalik Buterin Warns Devs About Adding AI to Blockchain

The controversies surrounding AI have come up once again with Vitalik Buterin warning people to be cautious when integrating AI with blockchain and Italy increasing its scrutiny of OpenAI.

• Vitalik Buterin cautioned against incorporating AI into high-value blockchain applications like prediction markets or stablecoins, pointing out the risk of AI oracles being compromised.

• Buterin still acknowledged potential benefits of AI in specific areas, like its use in micro-scale participation in prediction markets, where human involvement is impractical, and in enhancing the user interfaces of crypto wallets.

• Meanwhile, the Italian Data Protection Authority (IDPA) has found OpenAI to be in breach of the European Union's General Data Protection Regulation (GDPR).

🖥️ Ethereum’s Dencun Upgrade Goes Live on Sepolia Testnet

The deployment of the upgrade on the mainnet in the future is anticipated to greatly reduce fees and enhance scalability.

• The Dencun upgrade deployment on the Sepolia testnet began at 22:51 UTC on Tuesday and was quickly completed.

• Ethereum core developers implemented the upgrade on the Goerli testnet earlier in the month.

• The deployment of Dencun on the final testnet, Holesky, is scheduled for Feb. 7, with a successful completion expected to lead to the announcement of a mainnet launch date for the upgrade.

👀 QUICK NEWS

• Jack Dorsey’s Block Inc. Begins Layoffs Under Previously Disclosed Plan to Cut Staff by 10%

• Standard Chartered Foresees Ethereum ETF Approval by May 23

• January’s Biggest Crypto Hacks Earn Criminals $39M

• Spanish Embassy Spotted Hunting Crypto Airdrops on X

• Kraken Exchange Wins Court Battle Over XRP Data

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