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☆ US government appeals approval of Voyager sale to Binance.US
▼ + stars: | 2023-03-10 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Trustee, the Department of Justice's bankruptcy watchdog, filed a notice of appeal late Thursday in U.S. bankruptcy court in Manhattan. Voyager, Binance.US and the DOJ did not immediately respond to requests for comment on the appeal. Wiles disagreed, saying that Voyager and its employees should not be penalized for carrying out a court-approved sale to Binance.US. In approving the plan, Wiles had also overruled an objection from the SEC, saying that it attempted to cast doubt on the legality of the sale without presenting any evidence that Voyager or Binance.US had violated securities laws. Binance.US has agreed to pay $20 million in cash to Voyager, and to take on crypto assets deposited by Voyager customers.

In papers filed with a state court in Manhattan, James is seeking a permanent injunction to stop KuCoin from operating in New York until it complies with the law. KuCoin trails Binance, Coinbase and Kraken in trading volume among cryptocurrency spot exchanges, according to the data company CoinMarketCap. Last month, James sued the CoinEx cryptocurrency platform for failing to register with the state. In January, 10 states including New York secured up to $24 million from the cryptocurrency company Nexo Inc, which they also accused of operating illegally. Reporting by Jonathan Stempel in New York; Editing by Diane Craft and Daniel WallisOur Standards: The Thomson Reuters Trust Principles.

U.S. Bankruptcy Judge Michael Wiles approved Voyager's restructuring plan, which is built around the Binance.US acquisition, at a hearing in New York. Binance has agreed to pay $20 million in cash to Voyager, and to take on crypto assets deposited by Voyager customers. The customers' crypto assets, valued at $1.3 billion in February, account for the bulk of the deal's valuation, according to Voyager. Wiles approval of Voyager's plan allows it to begin transferring customer accounts to Binance, but Voyager could still walk away from the deal. Palo Alto-based Binance.US has said it is "fully independent" of its international parent company Binance, which is owned by Chinese-born and Singapore-based Changpeng Zhao.

The SEC, which has objected to the sale, is currently investigating whether Voyager's crypto lending business involved the sale of unregistered securities. When pressed by Wiles as to whether the SEC believed that the Voyager sale violated U.S. securities laws, SEC attorney William Uptegrove did not have a definite answer. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange. The crypto assets deposited by Voyager customers account for the bulk of the deal's valuation, according court documents. CFIUS did not formally object to the Binance sale, but it warned that its ongoing review of national security concerns could end up blocking the deal.

☆ Crypto Company Circle Focuses on Growth After Canceled SPAC Merger
▼ + stars: | 2023-02-22 | by ( Mark Maurer | ) www.wsj.com time to read: +6 min

Circle is still hiring even as many crypto companies are laying off staff and some have filed for bankruptcy following the run on the stablecoin TerraUSD last spring. The crypto company had been preparing to go public via a merger with a special-purpose acquisition company, a move to access the capital market, enhance its transparency and further expand operations internationally. A SPAC typically has as long as two years to find its merger partner, clear the SEC’s review process and complete the deal. Circle, which was founded in 2013, intends to make another bid to go public, though likely not this year, Mr. Fox-Geen said. Circle in 2021 said that Poloniex LLC, its discontinued crypto exchange business, paid $10.4 million to settle a case brought by the SEC.

☆ Coinbase swings to quarterly loss as crypto winter hits trading volumes
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

Shares in Coinbase, which lost roughly 86% of their value in 2022, were down about 2% in extended trading after results. But the biggest blow to the sector came from the bankruptcy of Sam Bankman-Fried's major crypto exchange FTX in November. Trading volumes at the crypto exchange in the fourth quarter plunged to $145 billion, compared with $547 billion a year earlier. The company reported net revenue of $605 million in the quarter, compared with $2.49 billion a year earlier. Coinbase reported a net loss of $557 million in the three months ended Dec. 31, compared with a profit of $840 million a year earlier.

☆ FTX's collapse wiped out $200 billion in the total value of the cryptocurrency market, and it hit retail investors in emerging economies the hardest
▼ + stars: | 2023-02-21 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

FTX's downfall wiped out $200 billion from crypto's market capitalization last year, a new report revealed. Retail investors in emerging economies like India and Thailand were hit the hardest, per the Bank for International Settlements. Over 80% of retail participants using a crypto-trading app would have lost money from the market turmoil. "Notably, this share is even higher in several emerging market economies like Brazil, India, Pakistan, Thailand and Turkey. The token, which promised retail investors lofty yields in exchange for parking their assets, caused $450 billion of market value to vanish, per the BIS report.

☆ The SEC has accused fugitive Terraform founder Do Kwon of multibillion-dollar crypto fraud linked to TerraUSD's collapse
▼ + stars: | 2023-02-17 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

The SEC has charged fugitive crypto boss Do Kwon and his company Terraform Labs with alleged fraud. The suit is linked to the collapse of stablecoin TerraUSD which led to a $60 billion wipeout last year. Terraform was "simply a fraud propped up by a so-called algorithmic 'stablecoin'," the SEC alleges. The Securities and Exchange Commission has accused them of misleading US investors about the stability of algorithmic stablecoin TerraUSD, or UST, which was meant to be pegged to the US dollar. At the same time, the SEC is also charging Terraform and Kwon over the sale of unregistered securities, the markets regulator said.

☆ Crypto Layoffs and Bankruptcies in 2023: Here’s the List to Watch
▼ + stars: | 2023-02-16 | by ( Candice Choi | ) www.wsj.com time to read: 1 min

The crisis roiling the crypto industry has continued to spread to a number of companies since the run on the stablecoin terraUSD last spring. Many of the biggest crypto lenders have fallen following customer withdrawals, risky practices and lack of regulation. The bankruptcy filings, in particular, have underscored how intertwined many of the industry players were.

☆ Fugitive Stablecoin Founder Do Kwon Accused of Securities Fraud in U.S.
▼ + stars: | 2023-02-16 | by ( Dave Michaels | ) www.wsj.com time to read: 1 min

Do Kwon is the developer behind the failed cryptocurrencies TerraUSD and Luna. WASHINGTON—The founder of failed cryptocurrencies TerraUSD and Luna and his company misled U.S. investors who purchased billions of dollars of the digital assets, the Securities and Exchange Commission said Thursday. The SEC filed a civil fraud lawsuit against Do Kwon and Singapore-based Terraform Labs Pte. Ltd. in Manhattan federal court, accusing them of misrepresenting the risk of TerraUSD and misleading investors about how Luna was used in South Korea.

☆ The crypto comeback: Here's what's driving it, according to Bernstein
▼ + stars: | 2023-02-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

A flurry of factors have come together recently to spark a big comeback for crypto . Those gains come after a difficult 2022 for the crypto market. Bernstein analyst Gautam Chhugani said that recent regulatory actions may not be as bad as people think, helping push crypto prices upwards. Short covering occurs when a short seller buys back shares in order to close out an open short position — returning borrowed shares — in an attempt to limit losses. But there's more than just short covering — there's fresh buying going on which is forcing prices to squeeze up, the firm said.

☆ U.S. SEC charges Terra founder Do Kwon with fraud
▼ + stars: | 2023-02-16 | by ( Hannah Lang | ) www.reuters.com time to read: +1 min

Kwon founded blockchain platform Terraform Labs and was the primary developer of two cryptocurrencies whose demise roiled crypto markets around the world last year. TerraUSD, an algorithmic stablecoin supposed to maintain a 1:1 peg to the U.S. dollar, derived its value through another paired token called Luna. Both tokens lost nearly all their value when TerraUSD, also known as UST, slipped below its 1:1 dollar peg in May 2022. Prior to its collapse on May 9, TerraUSD had a market cap of more than $18.5 billion and was the tenth-largest cryptocurrency. Reporting by Hannah Lang in Washington; Editing by Chris Reese and David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ SEC charges Do Kwon, Terraform with fraud in connection with Terra collapse
▼ + stars: | 2023-02-16 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Do Kwon, co-founder and chief executive officer of Terraform Labs, insists that he is not on the run from South Korean authorities. Terraform Labs, the company that Kwon founded, is behind the collapsed cryptocurrencies terraUSD and luna, which combined were worth $60 billion before they crashed. The Securities and Exchange Commission charged Terraform Labs and its CEO, Do Kwon, with fraud, alleging that they orchestrated a multibillion dollar "crypto asset securities fraud," the SEC said Thursday. The SEC alleges that Kwon marketed those assets, including those mAsset swaps and Terra, as profit-bearing securities, "repeatedly claiming" the tokens would increase in value. Kwon is wanted in South Korea for his involvement in the collapse of TerraUSD.

☆ US SEC charges Terra founder Do Kwon with fraud
▼ + stars: | 2023-02-16 | by ( ) edition.cnn.com time to read: +2 min

Kwon founded blockchain platform Terraform Labs and was the primary developer of two cryptocurrencies whose demise roiled crypto markets around the world last year. The SEC filing did not say where Kwon was living. According to the SEC’s complaint, Terraform Labs and Kwon misled investors about the stability of UST, and claimed that the firm’s crypto tokens would increase in value. Terraform Labs did not immediately respond to a request for comment. Globally, investors in TerraUSD and Luna lost an estimated $42 billion, according to blockchain analytics firm Elliptic.

☆ BUSD: US regulator orders Paxos to halt new issues of Binance-branded stablecoin
▼ + stars: | 2023-02-14 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —New York’s top financial regulator has ordered a crypto company to stop minting a major stablecoin, widening a clampdown on the embattled digital assets sector. Paxos also said it would “end its relationship” with Binance, the world’s largest crypto exchange. It did not say why the regulator had ordered it to stop issuing BUSD. Last week, the US Securities and Exchange Commission said overseeing crypto assets was a key priority for 2023. According to crypto advocates, the growing global clampdown could undermine the ecosystem for digital assets.

☆ Central bank test lab to trial 'stablecoin' monitoring system
▼ + stars: | 2023-02-07 | by ( Marc Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 7 (Reuters) - A global central bank test lab run out of London is designing a 'stablecoin' monitoring system aimed at giving authorities a clearer picture on how they work and how to regulate them in future. Stablecoins are a type of cryptocurrency which aim to maintain a 1:1 peg with a fiat currency such as the dollar. The collapse last year of a widely-used stablecoin pair, Luna and TerraUSD, sparked widespread turmoil in crypto markets. In a bid to ensure there is more oversight going forward, the Bank for International Settlements (BIS), often dubbed the central bank for the world's central banks, is to begin work in its London 'innovation hub' on a tool to keep tabs on them. "Most central banks lack tools to systemically monitor stablecoins and avoid asset-liability mismatches," the BIS said.

☆ Silvergate Capital shares jump after BlackRock reports increased stake in the crypto bank
▼ + stars: | 2023-01-31 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

Silvergate Capital jumped on Tuesday afternoon after BlackRock reported a 7% stake in the crypto bank. More than 70% of Silvergate Capital shares that are freely available to trade are sold short, according to FactSet data. Shares of the bank slid sharply November, when the crypto exchange FTX, a Silvergate customer, collapsed in scandal. Silvergate shares are now down about 20% in 2023. Earlier this month, shares of Silvergate tanked more than 40% after the bank reported massive withdrawals in the fourth quarter in light of the FTX collapse.

☆ Factbox: Crypto's string of bankruptcies
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +4 min

GENESIS GLOBAL CAPITALOne of the largest crypto lenders, Genesis froze customer redemptions in November after major exchange FTX stunned the financial world with its bankruptcy. Genesis Global Holdco, the parent group of Genesis Global Capital, also filed for bankruptcy protection, along with another lending unit, Genesis Asia Pacific. FTXThe Bahamas-based exchange shocked the crypto world by going bankrupt in November after suffering withdrawals of about $6 billion in just 72 hours and rival crypto exchange Binance ditched a possible rescue. CELSIUS NETWORKA crypto lender brought down by the collapse of terraUSD and luna, Celsius began its U.S. bankruptcy case on July 14. The U.S. affiliate of major crypto exchange Binance said in December it intends to buy Voyager's crypto lending platform in a deal valued at about $1 billion.

☆ Crypto news site CoinDesk hires banker to explore potential sale
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +1 min

Jan 18 (Reuters) - Crypto outlet CoinDesk Inc is exploring a full or partial sale of its business and has hired investment bank Lazard Ltd (LAZ.N) to lead the process, the media company's chief executive said on Wednesday. The crypto industry is going through one of its worst phases, with prices of major tokens at two-year lows and a string of bankruptcy filings from top players. "My goal in hiring Lazard is to explore various options to attract growth capital to the CoinDesk business, which may include a partial or full sale," CEO Kevin Worth told Reuters in a statement. The development comes amid an industry turmoil, which began with the crash of stable coins TerraUSD and Luna early last year. The company is wholly owned by crypto-focused venture capital firm Digital Currency Group, which also has interest in Coinbase, according to its website.

☆ Bitcoin rallies to a 2-month high after inflation data, shrugging off FTX and DCG troubles for now
▼ + stars: | 2023-01-12 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

The rally came after key inflation data raised hopes for a more favorable macro environment ahead. "While it's too early to count [the] chickens, the price action since yesterday has been encouraging," a crypto executive told Insider. Early Thursday, Consumer Price Index (CPI) data for December indicated that inflation pressures eased again, giving Federal Reserve officials leeway to slowdown rate hikes. Favorable inflation data ought to boost token prices and could "help the market cement [its] current rebound," said Wael Makarem, Senior Market Strategist at financial services firm Exness. Crypto markets endured a lengthy bear market through 2022.

☆ Voyager gets initial approval for $1 bln Binance deal amid national security concerns
▼ + stars: | 2023-01-11 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Jan 10 (Reuters) - Bankrupt crypto lender Voyager Digital received initial court approval on Tuesday for a proposed $1 billion sale of its assets to Binance.US, and said it will seek to expedite a U.S. national security review of the deal. He said Voyager intends to address any issues that would lead CFIUS to oppose the transaction. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange, Sussberg said. Voyager estimates the sale will allow customers to recover 51% of the value of their deposits at the time of Voyager's bankruptcy filing. In addition to CFIUS, Voyager's proposed sale was also opposed by the U.S. Securities Exchange Commission and state securities regulators.

☆ Voyager seeks to expedite national security review of Binance deal
▼ + stars: | 2023-01-10 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Jan 10 (Reuters) - Bankrupt crypto lender Voyager Digital is working to expedite a U.S. national security review that could delay or block its proposed $1 billion sale of its assets to Binance.US, its attorneys said on Tuesday. He said Voyager intends to address any risk that CFIUS would oppose the transaction. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange, Sussberg said. If CFIUS blocks the transaction, Voyager will be forced to repay customers with the crypto it has on hand, resulting in a lower payout for Voyager users, Sussberg said. Binance.US, based in Palo Alto, California, has said that its separate American exchange is "fully independent" of the main Binance platform.

☆ Billionaire bitcoin bull Mike Novogratz says 2023 will be a year for crypto markets to try and survive, and 'heal and rebuild narrative'
▼ + stars: | 2023-01-10 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Galaxy Digital CEO Mike Novogratz is still mostly upbeat about crypto in 2023. "The outlook for crypto is not horrible, but it's not great," Novogratz told CNBC. The bitcoin bull said crypto brokerage Genesis' liquidity woes are hanging over the industry. The bitcoin bull says the crypto outlook is "not horrible, but it's not great," he told CNBC's Squawk Box on Tuesday. Novogratz says that the Gemini and DCG debacle won't involve "a lot of selling" for crypto markets, but it's "just not great news."

☆ How to be a better investor in 2023
▼ + stars: | 2023-01-05 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

New York CNN —If you’re planning to invest your hard-earned money in stocks, bonds and other assets this year, let humility be your guide. In response, stocks and bonds, which typically don’t move in the same direction, moved down in tandem in 2022, with both ending the year deep in the red. Ignore the noiseWhether 2023 is great or awful for stocks — or, more likely, both at different times — that shouldn’t sway your investing decisions. Given recession concerns, Wilson noted that value stocks, which represent companies with strong fundamentals but are considered underpriced, tend to perform better during economic downturns. For those with a long time horizon and a high tolerance for risk, Wilson suggests looking for buying opportunities among stocks that have been hammered.

☆ Binance grabbed 66% of crypto trading volumes on centralized exchanges in the 4th quarter of 2022 as the industry consolidated following the fall of FTX
▼ + stars: | 2023-01-04 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Binance captured 66.7% of all trading volume on centralized crypto exchanges in the last quarter of 2022. Trading volumes on centralized exchanges declined 46.2% last year amid a harsh macro environment and crypto bear market. Even as spot trading volumes on Binance fell 45.3% to $5.29 trillion, the rise in the exchange's market dominance continued throughout 2022. Amid a lengthy crypto bear market, trading volumes on centralized exchanges declined 46.2% in 2022. Volumes across centralized exchanges, or CEXs, stayed well above decentralized exchanges, or DEXs, according to the report.

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