Lending
Troubled crypto lender Vauld gets extended creditor protection
Embattled crypto lending platform Vauld one more time gets the period of creditor protection from a Singapore court. The company should come up with a revival plan before Feb. 28. As reported by Bloomberg on Jan. 17, Vauld has been granted more than a month to close its negotiations with one of two digital-asset fund managers to take over the executive control of the tokens stuck on its platform. Apparently, the Singapore high court was satisfied by the company’s claim that the negotiations have entered to the “advanced stage.” In July 2022 the platform halted the withdrawals for its 800,000 customers, citing unfavorable market conditions and an unprecedented $200 million worth of withdrawals in under two weeks. In August, it has already been granted a three-month moratorium to come ...
Nexo leaving US, says country lacks clear regulations
The crypto borrowing and lending platform Nexo plans to gradually cease operations in the United States “over the coming months,” according to a blog post on Dec. 5. Nexo has stated that the decision to leave the U.S. is “regrettable but necessary.” Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity. — Nexo (@Nexo) December 5, 2022 In the post, Nexo said that it has been talking to U.S. regulators for 18 months in an attempt to determine how to comply with U.S. financial laws. But these talks have not resulted in an agreement between the company and U.S. officials. “Our decision comes after more than 18 months of good-faith dialogue with US state and federal reg...
Crypto lender Matrixport seeks $100M funding despite lending crisis
Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing crypto market crisis. Lead investors have already committed $50 million for Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported on Nov. 25. The deal has yet to be finalized as Matrixport is still looking for investors for the other half of the round. We’re excited and look forward to engaging with participants, on similar terms, in the other half of the #funding round. Appreciate the trust and confidence our investors continue have in Team #Matrixport.@business https://t.co/DqQhsYucUy — Matrixport (@realMatrixport) November 25, 2022 According to the company, the new round is part of Matrixport’s usual funding a...
Crypto lender Matrixport seeks $100M funding despite lending crisis
Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing crypto market crisis. Lead investors have already committed $50 million for Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported on Nov. 25. The deal has yet to be finalized as Matrixport is still looking for investors for the other half of the round. We’re excited and look forward to engaging with participants, on similar terms, in the other half of the #funding round. Appreciate the trust and confidence our investors continue have in Team #Matrixport.@business https://t.co/DqQhsYucUy — Matrixport (@realMatrixport) November 25, 2022 According to the company, the new round is part of Matrixport’s usual funding a...
Singapore MAS proposes to ban cryptocurrency credits
The Monetary Authority of Singapore (MAS) is introducing proposals to better regulate the cryptocurrency industry in the aftermath of the bankruptcy of the Singaporean crypto hedge fund Three Arrows Capital (3AC). The central bank of Singapore has issued two consultation papers on proposals for regulating the operations of digital payment token service providers (DPTSP) and stablecoin issuers under the Payment Services Act. Published on Oct. 26, both consultation papers aim to reduce risks to consumers from crypto trading and improve standards of stablecoin-related transactions. The first document includes proposals for digital payment token (DPT) services or services related to major cryptocurrencies like Bitcoin (BTC), Ether (ETH) or XRP (XRP). According to the authority, “any form of ...
After Mango Markets exploit, Compound pauses 4 tokens to protect against price manipulation
Decentralized lending protocol Compound has paused the supply of four tokens as lending collateral on its platform, aiming to protect users against potential attacks involving price manipulation, similar to the recent $117 million exploit of Mango Markets, according to a proposal on Compound’s governance forum that was recently passed. With the pause, users will not be able to deposit Yearn.finance’s YFI (YFI), 0x’s ZRX, Basic Attention Token (BAT) and Maker’s MKR (MKR) as collateral to take loans. The proposal passed on Oct. 25 with 99% of all voters in favor. It stated: “An oracle manipulation-based attack analogous to the one that cost Mango Markets $117m is much less likely to occur on Compound due to collateral assets having much deeper liquidity than MNGO and Compound requiring loans...
Celsius judge says court may look to UK consultation paper in absence of US guidance
The lack of crypto regulation in the United States has long complicated the lives of users and service providers, and now a judge has acknowledged the pain the judiciary also feels from its absence. Chief United States Bankruptcy Judge Martin Glenn, the judge who is leading the Celsius case, said the court will look abroad for guidance in the case. Glenn wrote in an Oct. 17 filing in the Celsius case: “Many, or pe[r]haps most, cases involving cryptocurrency may raise legal issues for which there are no controlling legal precedents in this Circuit or elsewhere in the United States or in other countries in which cases arise.” However, the court may consider the 529-page “Digital Assets: Consultation Paper” published by the Law Commission of England and Wales in the Celsius case in the future...
Texas authorities object to Voyager’s disclosure statement in its current form
The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) raised an objection in court against Voyager Digital’s disclosure statement, questioning the various methodologies and calculations used to estimate the fair market value of the bankrupt exchange’s crypto assets. In a pleading filed with the United States Bankruptcy Court for the Southern District of New York, the attorneys for the SSB and DOB objected to the order approving the adequacy of Voyager’s amended disclosure statement. Voyager Digital filed for Chapter 11 bankruptcy in New York in July 2022, while proposing a recovery plan for investors. The Texas state authorities argued that Voyager’s disclosure statement, which asserted that creditors might get a 70% return, fails to explain the methodology used ...
FTX reportedly considers bailing out Celsius via asset bid
Crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried (SBF), is reportedly considering bailing out Celsius Network by bidding on the bankrupt lender’s assets. Coincidently, the information came out the same day Alex Mashinsky resigned as the CEO of Celsius. “I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” said Mashinsky while explaining his decision. For FTX, acquiring the assets of Celsius would imply the exchange’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion. Bloomberg reported on FTX’s interest in Celsius Network based on insights from a person familiar wit...
Crypto Biz: DID you see what Africa is doing with Web3?
If you’ve spent any time reading about blockchain and Web3, you know that this industry is filled with big buzzwords and half-baked concepts. But, concepts such as decentralized identity services, or DIDs, bring real meaning and utility to Web3. If you haven’t yet wrapped your mind around DID, it refers to a self-owned, independent identity that enables trusted data exchange. In other words, it puts digital identity management and administration directly in your hands instead of some third party’s. In this week’s Crypto Biz, we take a look at a Web3 partnership designed to bring DID-powered payment solutions to Africa. We also chronicle Maple Finance, the European Central Bank and Nasdaq. Payments platform Fuse integrates ChromePay to bring DID services to Africa Is Web3 even possibl...
Bnk To The Future eyes acquisition of crypto lender SALT
Crypto lending platform SALT has received a buyout offer from a prominent online investment platform — a move the company said could potentially enhance its product offerings and advance its mission of making digital assets more accessible to mainstream audiences. Bnk To The Future, or BF, has submitted a letter of intent to acquire SALT for an undisclosed amount, the companies disclosed Friday. The acquisition is contingent on both parties signing definitive agreements and requires regulatory approval. Robert Odell, SALT’s chief product officer, described the potential acquisition as being a unity of first-movers in the cryptocurrency market: “This potential union will combine SALT, the world’s first crypto lending platform, with BF, the world’s first Bitcoin and crypto securi...
Cardano gets listed on Robinhood but ADA bulls are running out of steam, risking 40% drop
ThCardano (ADA) market has witnessed back-to-back pieces of good news since Aug. 31, from its listing on Robinhood, a U.S.-based retail investment platform, to the release of its first lending and borrowing protocol, Aada Finance. Additionally, Cardano developer IOHK stated that they are close to clinching “three critical mass indicators” that would lead to the launch of their long-awaited Vasil hard fork in September. Vasil aims to improve Cardano’s scalability and transaction throughput through pipelining. The upgrade could also improve the decentralized application (DApp) and smart contract capabilities by changing the Plutus script, a programming language used for smart contracts on the Cardano blockchain. This week, we’re well on our way to hitting our...
