The Crypto Currier 7th March

This week's biggest news in crypto the Crypto Currier (actually last week's, posted late, was ill, sorry)

The Fall of Silvergate’s Crypto Business?

Things haven't been going well for Silvergate bank, the downfall of which arguably became inevitable when the full extent of its involvement in FTXgate, when accusations it enabled/ turned a blind eye to/ didn't prevent some pretty blatant conmingling of customer funds became known. Once the go-to bank for crypto companies, with 1620 clients and at one stage seeing around 80% of all the money flowing through crypto, many, including big names, have left. Others have encouraged their customers to direct assets elsewhere. The bank postponing its annual 10-K financial report filing due to requests from its accountants and auditors and pending regulatory enquiries didn't help. Many are now wondering how close it is to bankruptcy, fears it hasn't done much to alleviate. At the end of the fourth quarter, Silvergate disclosed a $1 billion loss, with a total loss of over $8 billion in deposits from its crypto customers in the final months of 2022. It posted further losses in January and February and is the subject of investigations by bank authorities and the US Department of Justice. Expected further losses on its securities portfolio aren't helping either. Silvergate has warned these additional losses "could result in the company and the bank being less than well-capitalized". Its share price dropped 60% before stabalising to a 50% loss last week. (CoinDesk) and (Bitcoinist)

Silvergate shuts?crypto?payments network - SEN- that it once hyped?

Added to its remaining users' woes, Silvergate unexpectedly shut down its Silvergate Exchange Network (SEN) which had been hailed as its key, and flagship offering. Silvergate has called SEN "the heart" of its group of services for crypto clients. It offered customers the ability to move cash to each other, and to crypto exchanges, instantly, as opposed to the multiple days traditional bank wires can take, and, 24/7. "Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network," it posted on its website. "All other deposit-related services remain operational." SEN was big for crypto and used by many, if not most, institutional players in the space. It has led some to further question the continued viability of the bank. The move was announced two days after the bank warned that it was assessing its ability to continue operating as a "going concern". (The Street) and (CoinDesk)

Amazon NFT Rumours Continue, NFT Marketplace Expected Next Month

It's looking like the rumours circulating about Amazon's NFT marketplace may turn out to be true. Amazon is - according to various sources close to the company - reportedly getting set up to let its customers buy NFTs tied to real-world assets that are delivered to their homes. “They can onboard millions of users without educating people about self-custody, without educating people how to [set up] a MetaMask wallet,” one source said. If it happens, this could be the largest "utility" play in NFTs to date. Reports claim it may launch as early as late April or May There are also indications that Amazon is looking into creating its own private blockchain. Quite why anyone might want to buy NFTs connected to whatever else they buy on Amazon is a separate question. (Bitcoinist) and (Blockworks)

Spotify Explores Token-Enabled Playlists, takes its next Step Into Web3?

Spotify is going deeper into Web3. The music platform has launched a "token-enabled playlists" service with Web3 gaming and media entertainment platform Overlord. NFT holders will be able to connect their Web3 wallets and listen to a selected music playlist, for those who can test the pilot, available to Android users in the UK, US, Australia, Germany, and New Zealand. The new development follows Spotify's last year's move to allow artists to add NFTs to their profiles, a service reportedly available to NFT holders on Fluf, Overload, Kingship, and Moonbirds platforms. Spotify isn't unique in the music industry to go into Web3, with the industry seeing significant NFT funding rounds, sales, and partnerships, and several firms and artists embracing Web3. (Bitcoinist) Read More

Bitfinex And Tether Falsified Documents To Access Bank Services, Report Claims

Crypto exchange Bitfinex and sister company stablecoin Tether allegedly falsified documents to access banking services in 2018, according to a report by The Wall Street Journal. The firms reportedly presented shell companies and used other individuals to deceive banks after they were banned from operating in New York for giving out loans to investors and offering unregistered securities. Attempts to access banking services (one of the big and ongoing issues affecting the whole industry) led to further issues with regulators and assets worth millions of dollars being seized. But here, the general banking industry isn't the main one to blame. Tether's issues began when the US government discovered it hadn't been exactly honest about backing up its coins with USD reserves. The Commodity Futures Trading Commission found that from 2016 to 2018, Tether held only 27.6% of all circulating coins in USD equivalent, with its reserve depending on third parties and unregulated entities holding funds. This for a coin that had claimed to be entirely backed by USD. 27.6% isn't 100%. Tether also shared reserves with Bitfinex. One is reminded of FTX/ Alameda. (Bitcoinist) Read More

Coinbase suspends Binance?stablecoin

Coinbase is delisting competitor exchange Binance's USD (BUSD) stablecoin due to it not meeting internal listing standards. The token will be delisted on March 13th on all Coinbase platforms. This isn't Binance's BUSD only woe - it is also under regulatory scrutiny from the New York Department of Financial Services and the SEC. (Finextra) Read More

Sen. Elizabeth Warren and colleagues demand to see Binance’s balance sheets

Crypto exchange Binance is facing its latest demands. US Senators, including crypto skeptic Elizabeth Warren, have sent a letter to CEO Changpeng Zhao and Binance.US CEO Brian Shroder expressing concern over its activities and requesting information. "Your companies’ apparent attempts at evading the enforcement of anti-money laundering laws, securities laws, information reporting requirements, and other financial regulations cast serious doubt on the stability and legitimacy of Binance and its related entities, and on your commitment to your customers," the senators wrote. They also claimed there is evidence Binance attempted to evade US regulators, facilitated money laundering of at least $10 billion, and lacked transparency. The senators asked for documents and information including all Binance and Binance subsidiary balance sheets from 2017 to the present and copies of anti-money laundering and similar policies, and documentation of the relationship between Binance and Binance.US, as well as explanations of various news reports, giving a two-week deadline for response. (Trading View) Read More

Celsius Custody customers finally begin withdrawals 263 days after freeze

After 263 days of frozen withdrawals, some holders of crypto lender Celsius Custody accounts are finally able to withdraw funds from the company, at least according to social media posts. Customers who whitelisted wallets ahead of their withdrawal attempt reportedly got their funds back within minutes (finally), while others reported large delays. Those who had only ever held funds in the lender's custody accounts can now withdraw 94% of their original funds. Those who had transferred funds from its earn or borrow programs to a custody account can withdraw 72.5% of their funds up to a maximum of $7,575. (Cointelegraph) Read More

FTX presentation shows ‘massive shortfall’ in firm’s assets

Failed crypto exchange FTX has disclosed a massive shortfall in its digital assets and fiat currency holdings, with billions worth of customer funds missing from the exchange and its US arm FTX US. FTX had $2.2bn in exchange wallets and fiat accounts, with a $8.6bn deficit at the time of its bankruptcy, according to an presentation. FTX US held $191m of total assets, with $28m of customer receivables and $155m of related party receivables. This follows the plea of former FTX engineering director Nishad Singh to charges of wire fraud and commodities fraud conspiracy on February 28 with CEO SBF now restricted to a non-smart phone. (Cointelegraph) Read More

Xapo Bank Becomes 1st Lender To Enable Near-Instant?Bitcoin?Payments

Xapo Bank has become the first private bank to accept Bitcoin Lightning payments with a full license. It partnered with Lightspark and integrated the Lightning Network to achieve this. Users can pay instantly for purchases up to $100 at any vendor accepting Lightning payments without incurring high transaction fees or long blockchain confirmation wait times. Xapo intends for the integration to bridge the gap between traditional finance and crypto. Seamus Rocca, Xapo Bank CEO said the partnership allows their members to pay for small purchases with Bitcoin without having to convert to USD first. (Cointelegraph) Read More

Near Protocol releases?blockchain?operating system for Web3

NEAR protocol has unveiled its Blockchain Operating System, which aims to improve user experience on Web3. The system is a common layer for browsing and discovering open web resources and works with any blockchain or Web2 backend and promises to deliver decentralised and composable frontends for developers. Co-founder Illia Polosukhin said it provides developers with a platform and services to build on top of, allowing them to "plug in here" and "let developers build." Numerous projects migrated to NEAR over the last year due to the lower costs of hiring JavaScript smart contract developers. (Cointelegraph) Read More

Nigerians’ Rejection of Their CBDC - a forewarning

Protests have erupted in Nigeria over a cash shortage caused by restrictions aimed at moving towards a 100% cashless economy, as well as the government's implementation of a central bank digital currency (CBDC). Citizens are calling for the restoration of paper money instead of adopting the CBDC, citing concerns over financial freedom and privacy risks. This echoes similar sentiments expressed by commenters when the US Federal Reserve solicited feedback on CBDCs, where over two-thirds of the respondents expressed concerns about privacy, financial freedom and the stability of the banking system. While CBDCs have been gaining popularity among central bankers and policymakers, citizens are sceptical about the benefits it would bring to consumers. (CoinDesk) Read More

UK banks HSBC, Nationwide to ban?crypto?purchases with credit cards

HSBC and Nationwide Building Society have announced that they will be banning cryptocurrency purchases via credit cards for retail customers in the UK, following warnings by UK regulators and scandals surrounding the industry. Nationwide has reportedly set daily limits of ￡5,000 on debit-card purchases of crypto assets, while credit cards will no longer be available for crypto transactions. HSBC last month stopped its customers from making crypto purchases with their credit cards due to the potential risks. Other banks in the UK that have restrictions on crypto services are Santander, Natwest Group, and Lloyds Banking Group, with most of the restrictions targeting the Binance. (Cointelegraph) Read More

Crypto?Scammer Monkey Drainer Announces Shut Down Of Criminal Operations

Phishing scam group Monkey Drainer, known for high-profile crypto thefts, has said it will retire from crypto. The group had stolen over $1m in ETH and accumulated $13m in NFTs and crypto through more than 7,300 transactions. It has now said it will destroy all servers, files, and devices used in their operations. The post told wannabe cyber criminals not to lose themselves in pursuing easy money and suggested that those more dedicated to stealing crypto should operate a large cybercrime group, recommending its competitor Venom Drainer. By pure coincidence,Venom Drainer had emerged a day before the announcement indicating plans to replace Monkey Drainer with a newer group.?There has been a known trend in criminal groups rebranding, but who would I be to suggest the timings aren't anything more than coincidence. While reporting the incident on Twitter, PeckShieldAlert said the group had attempted to obscure their funds by depositing 200 ETH worth $330,000 into sanctioned mixer Tornado Cash leaving it with up to 840 ETH coins worth $1.4 million in its main wallet. (Bitcoinist) Read More

Still-Unreleased NFT TV Show 'Krapopolis' Gets Third Season

New, as yet unreleased animated TV series Krapopolis has been renewed for a third season before airing its first episode, and is now funding itself by NFTs. Krapopolis launched its first NFT collection, the aptly named 10,420 Krap Chicken collection, in August, offering holders voting rights on show elements, behind-the-scenes content, and access to cast and crew events, as well as rewards for official merchandise and digital goods. Krap Chickens can still be minted on its site for 0.18ETH, about $280, with a floor price of around 0.11 ETH (about $170) on OpenSea. A lower floor price on other sites is generally considered to be a negative sign for future values. Fox Entertainment has invested $100 million in the project, which has generated approximately $650,000 in sales, according to OpenSea. The series, set in ancient Greece, is scheduled to premiere on Fox sometime this year. (CoinDesk) Read More

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