Crypto companies are in trouble, the European Union tries to bring about a crypto wild west system and the biggest creator of Tik Tok joins the main crypto exchange forces. These stories and more this week in crypto.
Three Arrows Capital files for bankruptcy
Crypto investment firm Three Arrows Capital, which manages nearly $10 billion in assets, has filed for bankruptcy. The decline in the value of digital assets in recent weeks has exposed a liquidity problem for the company, which is known for its high levels of betting. A bankruptcy filing is an action aimed at protecting US assets.
Coordinated attack on Tether
Tether CTO, Paolo Ardoino, confirmed rumors that the Tether stablecoin has been attacked by hedge funds. Genesis Global Trading says hedge fund clients have made hundreds of millions of dollars in Tether short trades using its services. Until now, the stable coin has been strongly linked to the dollar.
CoinFlex: Bitcoin.com founder $47M
Coinflex Currency has stopped disconnecting customers from a large account with a $47 million negative balance due to liquidity problems attributed to top Bitcoin money evangelist Roger Ver. Bitcoin.com founder Ver denied the exchange owed anything, tweeting that CoinFlex does indeed owe money.
Another Crypto lender in trouble
As the contagion continues to spread through the crypto market, Voyager has become the latest crypto lender to stop digital withdrawals, trading and deposits. The move comes days after the company issued a default notice to hedge fund Three Arrow Capital after it defaulted on loan payments.
EU tries to regulate digital assets.
European legislators have reached an agreement on crypto regulation. Known as the Markets in Crypto-Assets or MCA, this is the EU’s first attempt to create a comprehensive regulatory framework for digital assets in the region. According to the EU, the aim is to “regulate the wild west of crypto assets”.
Grayscale Sues SEC
Grayscale, which manages the world’s largest bitcoin fund, said it will sue the US Securities and Exchange Commission after regulators rejected a request to convert its investment vehicle into an ETF. The SEC rejected Greyscale’s application for a spot on a bitcoin exchange after the investment manager failed to answer questions about market manipulation.
Bitcoin bulls continue to buy the dip.
After losing $60 million in value from his bitcoin purchases, El Salvador’s president bought another $1 million to line up an additional 80 BTC for El Salvador’s stash. Also, with rumors of a loss imminent, Michael Saylor’s MicroStrategy also boldly made another bitcoin purchase. Since the cryptocurrency market’s massive selloff in May, it has revealed that it bought 480 bitcoins for $10 million.
HTC’s new Metaverse smartphone
Smartphone manufacturer HCC The Desire 22 Pro will have the Viverse Metaverse app and a built-in crypto wallet. Users can create virtual tokens and manage crypto assets, including NFTs.
The world’s most followed TikToker, Kabi Lame, has joined Binance as a global ambassador. Khaby Lame uses his signature style to help dispel some of the misconceptions surrounding Web 3. In an effort to increase awareness and adoption of Web3, it will further enhance the experience for its fans.
That’s what happened in crypto this week, see you next week.