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☆ Coinbase, Gemini and other big crypto names have rushed to ditch Silvergate after the bank warned of building troubles
▼ + stars: | 2023-03-03 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +4 min

Crypto companies are cutting ties with Silvergate, once the go-to bank for digital currenciesThis comes after the crypto bank flagged doubts about its survival. Coinbase, Paxos Trust, Circle Internet Financial and Galaxy Digital Holdings all said Thursday they plan to suspend banking with Silvergate, as did the Winklevoss twins' Gemini. The exodus of crypto exchanges, stablecoin issuers and trading desks came after Silvergate flagged doubts about its future in business. Shares have fallen almost 95% in the past 12 months, as more than a dozen of its crypto firm customers shut down, were fined or came under investigation. Silvergate used to be the go-to bank for the biggest names in crypto, operating a key payments network used for real-time transfers between the firms.

☆ Crypto companies behind tether used falsified docs: Report
▼ + stars: | 2023-03-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCrypto companies behind tether used falsified docs: ReportCNBC’s Mackenzie Sigalos joins Eamon Javers and the 'CNBC Special: Taking Stock' to report from a crypto conference in Colorado.

WASHINGTON, Feb 23 (Reuters) - Top U.S. banking regulators issued a fresh warning to banks to be on guard for any liquidity risks from cryptocurrency-related clients, cautioning some of their deposits could prove volatile. The agencies noted deposits placed with banks for the benefit of crypto consumers, as well as stablecoin reserves, could be subject to rapid outflows. Regulators said the new statement was spurred by "recent events" in the crypto sector that highlighted volatility risks. But regulators expressing concerns about the stability of those reserves could cause banks to further examine their relationship with stablecoin firms. The statement noted that stablecoin reserves could see large and rapid outflows in cases of unanticipated stablecoin redemptions and turmoil in crypto markets, for example.

☆ 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.

☆ Analysis: Stablecoin regulatory crackdown sends warning to industry
▼ + stars: | 2023-02-22 | by ( Hannah Lang | ) www.reuters.com time to read: +5 min

But usage is raising questions from regulators who have expressed concern about the disclosures stablecoin issuers provide, as well as the tokens' potential instability during periods of stress. While the crypto industry has criticized the SEC's broad industry crackdown, the move against Binance USD, the third-biggest stablecoin with about $16 billion in circulation, could lend some guidelines for which stablecoin activities may get scrutinized. SEC Chairman Gary Gensler has previously said he believes some stablecoins are in fact securities, which require registration and additional regulatory oversight. The New York Department of Financial Services also ordered Paxos last week to stop minting Binance USD. But the specific features of tokens like Binance USD have some stablecoin issuers keen to highlight their differences.

REUTERS/Benoit Tessier/File PhotoFeb 21 (Reuters) - The world of stablecoins is suddenly looking shaky. "There's way too much demand for dollar-based stablecoins for them to go away," said Alex Miller, CEO at bitcoin developer network Hiro. Market leader tether (USDT) has been a big beneficiary, adding $1.9 billion to its market capitalization to hit $70.3 billion since the news. It now commands 52.6% of the stablecoin market, up from just over 51%. Traders also use these tokens to hedge their positions, and hence dwindling market value is associated with falling liquidity and leverage in the broader crypto market.

☆ The SEC has a stablecoin firm in its sights — and it could shake up the whole $137 billion market
▼ + stars: | 2023-02-20 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +4 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. The move will have major implications for the $137 billion market, experts told CNBC. Are stablecoins securities? Renato Mariotti partner, BCLPIf BUSD is deemed a security by the SEC then the regulator would have oversight over the stablecoin. "Absent a successful fight, it is most likely BUSD will no longer be sold into the U.S. or be available on U.S.-based digital asset exchanges," Lansing said.

[1/2] People stand in line to use an ATM money machine in Saint Petersburg, Russia February 27, 2022. For the majority, who bank in roubles with huge retail lenders, such as Sberbank (SBER.MM), the answer is: not much. "Nothing has changed for me at all," said Vyacheslav Fatikhovich, a taxi driver in the Urals city of Yekaterinburg. "The only thing is that customers are paying less by card and more often in cash," he said. "I quickly opened three UnionPay cards at different Russian banks," Andrey, who now works outside Russia, said.

☆ Crypto markets on edge as U.S. regulatory crackdown on industry intensifies
▼ + stars: | 2023-02-14 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. On Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD, or BUSD, stablecoins . Investors are digesting a number of major regulatory actions in the U.S., as authorities look to rein in the once free-wheeling cryptocurrency industry. Digital currency markets are on edge after a flurry of aggressive regulatory actions from U.S. authorities over the past few days. There is no official SEC action against Paxos currently.

☆ Cantor Fitzgerald Helps Oversee Tether’s $39 Billion in Treasury Holdings
▼ + stars: | 2023-02-10 | by ( Peter Rudegeair | Ben Foldy | ) www.wsj.com time to read: 1 min

Billions of dollars in Treasurys that back the world’s most traded cryptocurrency are being run on Wall Street. Tether Holdings Ltd., the secretive Hong Kong-based owner of stablecoin tether, is using Cantor Fitzgerald to help oversee its $39 billion bond portfolio, according to people familiar with the matter. Details of how Tether managed those assets haven’t been widely known.

☆ Wall Street Firm Oversees Billions of Dollars Backing Tether
▼ + stars: | 2023-02-10 | by ( Peter Rudegeair | Ben Foldy | ) www.wsj.com time to read: 1 min

☆ Tether records surprise profit as stablecoin giant aims to put reserve controversy behind it
▼ + stars: | 2023-02-09 | by ( Ryan Browne | ) www.cnbc.com time to read: +1 min

Tether on Thursday published its latest quarterly financials, with the world's top stablecoin issuer stating publicly for the first time that it generated a profit. "Tether is not disclosing any financial information other than those reported in the CRR [Consolidated Reserves Report]," Tether told CNBC in emailed comments. Tether is the issuer of USDT , the world's largest stablecoin by market capitalization. Stablecoins are tokens that are meant to always be fully backed by an equivalent value of reserve assets. But Tether has long been dogged by concerns that its token isn't completely backed one-to-one by an equivalent value of reserves.

Binance, the world's largest crypto exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision. "We are temporarily suspending USD bank transfers as of February 8th," a Binance spokesperson told CNBC. The company said "0.01% of our monthly active users leverage USD bank transfers," and added that "we are working hard to restart service as soon as possible." Binance's net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham.

Tether Holdings Ltd. operates a $68 billion stablecoin at the heart of crypto’s alternative financial universe. Far more tether trades each day than bitcoin. Yet the company’s founders and owners are an unusual bunch with scant experience at that scale of finance. One founder was a child actor turned early crypto investor. Another founder and top shareholder practiced plastic surgery before turning to electronics importing and then crypto.

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On a larger exchange like Binance or Coinbase , for example, many customers opt to let the platform custody their crypto tokens. In the four years that Bitzlato operated, only $52 million moved directly from the exchange to Binance, the same dataset shows. CNBC reviewed transaction data for the ten largest recipients of Bitzlato outflows, which collected over $45 million in Bitzlato-originated funds. Those wallets also received millions more in funds from other exchanges, including Huobi, FTX, Poloniex, Nexo, and WhiteBIT, a Ukrainian exchange. We also asked whether Binance was aware that Bitzlato was allegedly used to launder money and, if so, why funds from Bitzlato were custodied on its platform.

☆ Jamie Dimon says bitcoin itself is a 'hyped-up fraud'
▼ + stars: | 2023-01-19 | by ( Jesse Pound | ) www.cnbc.com time to read: +1 min

Bitcoin and other cryptocurrencies have been an unnecessary distraction for investors and the industry is rife with scams, JPMorgan Chase CEO Jamie Dimon said Thursday. "I think all that's been a waste of time... Bitcoin itself has been a hyped-up fraud, a pet rock," Dimon said on CNBC's " Squawk Box ." The hype around this thing has been extraordinary," Dimon said, pointing to FTX and controversies surrounding other crypto firms like Tether. "Blockchain is a technology ledger system that we use to move information. ... That is a technology ledger that we think will be deployable," Dimon said.

☆ FTX money trails leading to politicians, media, and other crypto exchanges point to the deep influence of Sam Bankman-Fried
▼ + stars: | 2023-01-19 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Here's what Bankman-Fried seemed to be aiming at: Stash money with all the right people, while lobbying for policy favorable to FTX. As CoinDesk reported this week, 37% of Congress took money from Bankman-Fried and other FTX executives. House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer were among the 196 senators and representatives that received funds. Other lawmakers included some who were just sworn into congressional ranks this month, which points to Bankman-Fried possibly seeking to hold sway over new members. GOLDMAN SACHS stock price on Jan. 19, 2023 Markets Insider10.

☆ A stablecoin collapse could spill into the U.S. bond market and economy, professor warns
▼ + stars: | 2023-01-13 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

The near $1.4 trillion collapse of the crypto market in 2022 didn't make a dent to traditional assets like stocks or to the real economy. Stablecoins are a type of digital currency that is supposed to be pegged one-to-one with a fiat currency such as the U.S. dollar or the euro. Tether says that more than 58% of its reserves are held in U.S. Treasury Bills, accounting for around $39.7 billion. "And a large volume of redemptions even in a fairly liquid market can create turmoil in the underlying securities market. And given how important the Treasury securities market is to the broader financial system in the U.S. ...

☆ A crypto crash for big stablecoins is likely to send shudders through other financial markets too, a Cornell professor warns
▼ + stars: | 2023-01-12 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

A crashed stablecoin could pose a threat to the wider financial system, a Cornell professor warned. The companies that issue stablecoins would have to redeem their government bond holdings if the digital tokens fail, Eswar Prasad said Thursday. "A large volume of redemptions, even in a fairly liquid market, can create turmoil in the underlying securities market," Prasad said. The turmoil hasn't yet spilt over into traditional financial markets, but financial watchdogs are worried that stablecoin issuers' government bond holdings pose that risk, according to Prasad. "The fact that we haven't had spillovers from this part of the financial ecosystem into traditional financial markets or into the real economy certainly seems to be suggestive of the fact that there is a firewall," he added.

☆ Sam Bankman-Fried denies moving funds out of crypto wallets following reports Alameda transferred tokens
▼ + stars: | 2022-12-30 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

Sam Bankman-Fried denied moving funds out of wallets associated with Alameda Research. Cointelegraph said wallets associated with Alameda transferred funds just days after he was released on a $250 million bond, raising suspicions in the crypto community. The report also said several dormant Alameda wallets swapped ether for the stablecoin Tether before moving tokens into mixers. Several Twitter commentators cited public blockchain data that showed the Alameda wallets ultimately swapped the tokens for bitcoin. Alameda Research currently holds $112 million worth of cryptocurrencies, a decline from $140 million in holdings in November.

☆ Sam Bankman-Fried's Alameda Research sells $1.7 million in crypto amid bankruptcy and still holds over $112 million in tokens
▼ + stars: | 2022-12-29 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

Alameda Research liquidated $1.7 million worth of cryptocurrencies over the past 24 hours. Data showed that wallets associated with Alameda unloaded Ethereum-based tokens, which were later swapped for bitcoin. The sales come amid bankruptcy proceedings for Sam Bankman-Fried's crypto empire. Arkham said in a Twitter thread that wallets linked to Alameda Research were dormant up until Wednesday, with the last prior transaction occurring on December 1. Alameda Research currently holds $112 million worth of cryptocurrencies, CoinDesk says, a decline from $140 million in holdings in November.

The events of the year took many investors by surprise and made the task of predicting bitcoin's price that much harder. The crypto market was awash with pundits making feverish calls about where bitcoin was heading next. When asked about his $250,000 target earlier this month, the Draper Associates founder told CNBC $250,000 "is still my number" — but he's extending his prediction by six months. The entrepreneur says he's also done making bitcoin price predictions. Buehler said lack of risk management in the crypto industry, missing regulation and fraud have also been major factors affecting prices.

The article was one of a series of reports this year by the news agency on Binance's financial compliance and relationship with regulators across the world. Reuters also asked representatives of the local Binance units and affiliates about their relationship with the main Binance exchange. In Italy, Binance's public corporate filings detail just the unit's capital base and its ownership by a separate Binance company in Ireland. The Italian company, Binance Italy S.R.L., has its listed address in a block of shops and apartments in the southern city of Lecce. Just two of the Binance units analysed by Reuters offer more substantial details in their filings.

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