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Join the Securities Litigation and Enforcement Group on LinkedInCrypto Crash: Hedge Fund 3AC Defaults As Liquidity Dies up Across Sector
Cryptocurrency hedge fund Three Arrow Capital defaulted on a $650 million loan Monday, according to lender Voyager Digital. The loan is comprised of roughly 15,000 bitcoin and $350 million worth of the stablecoin USDC. The failure to pay is the latest blow to the hedge fund which previously saw a tranche of its positions liquidated […]
Hackers Steal $100 Million by Exploiting Crypto’s Weak Link – Bloomberg
Hackers looted about $100 million from a so-called cryptocurrency bridge, again exposing a key vulnerability in the digital-asset ecosystem. Blockchain Harmony said in a tweet that the hack of its Horizon bridge, which lets people swap coins between different blockchains, took place Thursday morning. It has “begun working with national authorities and forensic specialists to […]
Cryptocurrency Bear Market: This Bitcoin Crash Is Different From the Past – Bloomberg
For a generation of alienated techies, crypto’s all-for-one ethos was its biggest draw. Now panic is spreading across this universe — and that same ethos is posing what may be the biggest threat yet to its survival. What started this year in crypto markets as a “risk-off” bout of selling fueled by a Federal Reserve suddenly determined […]
Crypto’s biggest critics won’t back down
According to Diehl, the crypto industry is reinventing the financial catastrophes of the past. Crypto is like early days, he argues: specifically, the wildcat banking of the 19th century, when small banks outside of federal regulation in the US issued paper cash without enough gold or silver to back it. It made for an unstable […]
SEC chair urges ‘one rule book’ for crypto to avoid gaps in oversight | Financial Times
Gensler said he was working on a “memorandum of understanding” with the CFTC, which he headed from 2009 to 2013. The SEC has jurisdiction over platforms listing tokens that are deemed securities. If a token that represents a commodity is listed on a platform overseen by the SEC, the securities regulator would “send that information […]
The crypto crime wave is real and it’s gotten worse. – Los Angeles Times
The growth in crypto fraud has turned exponential in recent years. The reported losses from crypto scams in 2021 were 60 times larger than in 2018, the Federal Trade Commission reported earlier this month, with crypto now accounting for 1 out of every 4 dollars lost to fraud in the reports monitored by the agency. […]
The Fire Burning Beneath Crypto’s Meltdown – WSJ
The appeal of gold today is that it acts as a haven in bad times, and typically acts as a partial hedge against inflation. Bitcoin holders have discovered that not only is it not a hedge against inflation, it isn’t a haven either. Its price tends to move in line with risky assets, not safe […]
Chainalysis Launches 24/7 Hotline for Crypto Crime Victims
Blockchain research firm Chainalysis has launched a new hotline that will provide support for organizations that have been targeted by a crypto-related cyber attack or ransomware demand. The Crypto Incident Response hotline will function 24/7, and victims will be paired with a team of investigators from Chainalysis who will trace and label the funds in […]
Alex Mashinky’s Celsius crypto bank draws probe by five states – The Washington Post
As a private unregulated company, Celsius does not come under any requirement for disclosure. Mashinsky has said the company is simply lending the crypto to investors willing to pay a premium for it. Critics including Klippsten say it has more likely been taking risky bets with that cash in a host of volatile coins and […]
Terraform: crypto collapses lessen pressure on banks and regulators | Financial Times
For traditional finance, crypto woes could not have materialised in a handier form. They have disproved claims that prices were uncorrelated to conventional assets. They have shown that investors can easily lose their shirts. And they have had little spillover because the sector is still relatively unconnected and small. For example, the total value of […]