Wednesday 28 September 2022
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Pat Toomey blames the SEC for crypto lending platform crisis

According to Senator Pat Tomey, famous for his vocal support for the crypto industry, the United States Securities and Exchange Commission (SEC) could have prevented the loss of $12 billion in assets by investors who trusted Celsius, a crypto lending platform, that froze their deposits in June. An official letter from Toomey to SEC Chairman Gary Gensler, dated by July 26, suggested that the Commission’s inability to clarify how it would apply existing securities laws to digital assets and services drew undesirable repercussions. As Toomey writes: “Companies could have adjusted product offerings accordingly, preventing investor losses today, and the SEC would have been free to focus enforcement efforts on the worst actors.”According to Toomey, the SEC didn’t properly explain how the Howey and Reves tests applied to crypto lending platform products that paid interest to customers making crypto deposits. Instead, he emphasized, the SEC is choosing to regulate by selective enforcement. T..

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Marriages and court cases can be held in the Metaverse

Legal marriage proceedings, court case disputes and government services may one day be offered on the Metaverse, according to a Singaporean government minister. Speaking at the TechLaw Fest 2022 on July 20, Singapore’s Second Minister for Law Edwin Tong argued even highly personalized, intimate events such as the solemnization of marriages have taken place online in the Metaverse: “It would not be unthinkable that, besides registration of marriages, other government services can soon be accessed online via the Metaverse.”On the subject of legal services in the Metaverse, the Minister added that there is “no reason why the same cannot be done for legal services.” “The pandemic has already shown us that even dispute resolution — once seen to be a physical, high-touch process [...] can also be held almost entirely online.” Tong gave the example that a legal dispute involving an accident on a construction site for example could be viewed in three dimensions via a “single virtual platform”..

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Professional soccer club Crawley Town FC signs midfielder after NFT vote

Professional English soccer team Crawley Town F.C. have followed through on a community vote by fans and nonfungible token (NFT) holders who were recently given a voice on what type of player the team should recruit next. The vote, which took place on June 15 and was the first team decision opened up to fans, took place for verified NFTs hodlers via a temporary Discord channel. Votes were also taken from nearly 1,000 season ticket holders. Speaking with the Daily Mail on Thursday, Crawley Town co-owner and former ESPN gambling analyst Preston Johnson emphasized the significance of being able to offer fans a stake in the club via NFTs: “A lot of NFT projects are just speculation with no real tangible spine, no real true story. Having a football club to root for every week? That’s a spine that people attach themselves to.”“If we can bring that to this crypto audience, especially if we’re able to actually achieve promotion and move up the ranks of the English football league, then it’s..

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Fed demands Voyager remove ‘false’ claims deposits are FDIC insured

Crypto lender Voyager Digital has been directed to remove “false and misleading” statements that its user’s deposit accounts are FDIC insured. In a joint letter written on Thursday by Seth Rosebrock and Jason Gonzalez, assistant general counsel at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to Voyager Digital, the authors said the representations “likely misled and were relied upon” by customers who placed funds with Voyager who now no longer have access to it: “These representations are false and misleading and, based on the information we have to date, it appears that the representations likely misled and were relied upon by customers who placed their funds with Voyager and do not have immediate access to their funds.”The Fed and FDIC allege that Voyager “made various representations online, including its website, mobile app, and social media accounts” which suggested it was: “(1) Voyager itself is FDIC-insured; (2) customers who invested with the Voyage..

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Phishing risks escalate as Celsius confirms client emails leaked

Celsius depositors should be on the lookout for phishing scams after the company revealed some of its customer data had been leaked in a third-party data breach. On Tuesday, Celsius sent an email to its customers informing them that a list of their emails had been leaked by an employee of one of its business data management and messaging vendors. According to Celsius, the breach came from an engineer at the Customer.io messaging platform, who leaked the data to a third-party bad actor. “We were recently informed by our vendor Customer.io that one of their employees accessed a list of Celsius client email addresses,” said Celsius in its email to customers. The data breach is part of the same incursion that leaked OpenSea customer email addresses in June. Celsius has, however, played down the incident stating that it did not “present any high risks to our clients,” adding that they just wanted users to “be aware.” On July 7, Customer.io wrote in a blog post that “We know this was a re..

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Solana Spaces store to bring 100K people to Solana per month, says CEO

Solana Spaces CEO Vibhu Norby said the new physical Solana stores will introduce up to 100,000 people per month to the Solana ecosystem while also signaling plans to open a virtual storefront in the near future. Utilizing a grant from the Solana Foundation, the first Solana Spaces shop opened in the swanky Hudson Yards New York shopping center on Thursday. Addressing the community in an impromptu Twitter AMA on launch day, Norby explained the store is meant to teach new users about how to use decentralized applications (DApps) and noted that it would be introducing thousands of people into the Solana blockchain: “I don’t think people realize this but we’re going to bring 50 to 100,000 people into Solana every month through these stores — and that’s just this year.”Speaking to Cointelegraph in a phone interview following the AMA, Norby said the shop had 400 visitors, hinting also that new United States-based physical stores were in the works, and that “the store was designed for people..

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Solana-based stablecoin NIRV drops 85% following $3.5M exploit

Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail after dropping 85% from its United States dollar peg following a hack on adaptive yield protocol Nirvana Finance on Wednesday. The flash loan attack, which also saw Nirvana Finance’s native token ANA drop by 85%, resulted in the loss of $3.49 million worth of Tether (USDT), with the SolanaFM team being the first to confirm that the funds were siphoned via a flash loan attack on Wednesday: “Utilizing Solend Protocol’s Flash Loans, the hacker borrowed $10M USDC from the Solend Main Pool Vault which was used to exploit $3.49M USDT from the Nirvana Finance Treasury.”At the time of writing, both NIRV and ANA are down roughly 85% to $0.14 and $1.33, respectively, at the time of writing. On Nirvana’s website, it confirms that the protocol was “maliciously hacked and reserve funds are stolen. NIRV and ANA have lost their collateral, and do not have secured market value.” The Nirvana team is now offering the hac..

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3 Bitcoin trading behaviors hint that BTC’s rebound to $24K is a ‘fakeout’

Bitcoin (BTC) price rallied toward $24,200 on July 28 after a near-10.5% surge that began a day earlier. The gains appeared after Federal Reserve Chairman Jerome Powell signaled intentions to slow down the Fed's prevailing tightening spree. This prompted some Bitcoin analysts to predict short-term upside continuation, with pseudonymous analyst CryptoHamster seeing BTC at $26,000 next. But BTC's potential to recover entirely from its ongoing bearish slumber appears low for at least three key reasons. Bitcoin bulls have been duped beforeBitcoin established its record high of $69,000 in November 2022. Since then, the cryptocurrency has declined by more than 60% while undergoing several mini pumps on its way down. On the daily chart, Bitcoin has rebounded at least five times since November 2021, securing 23%-to-40% gains on each recovery. Nonetheless, it has continued its correction every time after forming a local price top around its exponential moving averages (EMA) and then..

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Final candidates for next UK prime minister have made pro-crypto statements

Rishi Sunak, the former chancellor of the Exchequer, and Liz Truss, Secretary of State for Foreign, Commonwealth and Development Affairs, two of the final candidates to become the next prime minister for the United Kingdom, have both previously expressed pro-crypto views. With Prime Minister Boris Johnson soon to be out of office, Sunak and Truss are competing to be the next leader of the Conservative Party and the country, with their views on digital assets likely to influence financial policy. Under Johnson, Sunak requested that the country’s Royal Mint create a nonfungible token as part of an effort to make the United Kingdom a global crypto hub. A member of Parliament who served as chancellor from 2020 until resigning in July, Sunak previously said the U.K. government would prioritize financial technology, including central bank digital currencies and stablecoins, aiming for the country to keep pace with innovation. He has also been behind many proposed financial services reforms p..

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Democratic senators chide Fidelity Investments for BTC-exposed retirement funds

Three United States senators have written to Fidelity Investments CEO Abigail Johnson demanding an explanation for the financial services company’s decision to include Bitcoin-exposed funds in its 401(k) retirement plans. “This decision is immensely troubling,” they wrote. Democrats Dick Durbin, Elizabeth Warren and Tina Smith sent their letter Tuesday. The letter, which is around a page and a half long, discussed Americans’ retirement savings habits in general terms with minimal statistics but numerous rhetorical flourishes and strings of adjectives. The money American consumers may invest in retirement funds is “hard earned,” for example, and their exposure to the “cryptocurrency casino” is “a bridge too far.” The authors of the letter asked: “When saving for retirement is already a challenge for so many Americans, why would Fidelity allow those who can save to be exposed to an untested, highly volatile asset like Bitcoin?” There is no call to action in the letter, aside from “We loo..

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