Banks want to reduce exposure to crypto companies, just as crypto companies want to reduce exposure to the current banking crisis. Tether’s latest audit report shows that the stablecoin issuer withdrew more than $4.5 billion from banks in the first quarter to reduce counterparty risk following Circle’s troubles during the Silicon Valley Bank collapse.
The last few days have also brought a change in the winds of Ripple’s battle with the United States Securities and Exchange Commission (SEC).for its acronym in English), with a US judge rejecting a motion from the securities regulator to seal some records. The move has been seen as a victory for Ripple, which considers the documents key evidence in its costly dispute with the regulatory agency.
Crypto Biz this week explores Tether’s Q1 audit, Ripple’s partial victory against the SEC, Worldcoin’s fundraiser, and the controversial Ledger recovery service.
Judicial Victory for Ripple: Judge Denies SEC Request to Seal Hinman Documents
A US securities regulator’s motion to seal records of internal deliberations has been denied in a move seen as a win for Ripple and the cryptocurrency community. The SEC filed the motion on December 22, 2022 to seal internal emails, text messages and expert reports after a speech by its former director William Hinman claimed that Ether (ETH) — the native token of the Ethereum blockchain — is not a security. Ripple views the speech as key evidence in its ongoing legal battle with the SEC, which alleges that Ripple’s sales of XRP (XRP) token violated US securities laws. Ripple has spent over $200 million defending itself against SEC allegations.
Another win for transparency! Unredacted Hinman emails to be publicly available soon – stay tuned as the lawyers work through the mechanics to make that happen. https://t.co/o6puPypRHd https://t.co/qmaLVeQaP8
—Brad Garlinghouse (@bgarlinghouse) May 16, 2023
Another victory for transparency! Hinman’s redacted emails will be publicly available shortly. Stay tuned as the lawyers work on the mechanisms to make this happen.
Tether boasts of its financial stability after its strong profits and the outflow of money from banks
The stablecoin operator Tether pulled more than $4.5 billion from banks in Q1 2023, leading to a “substantial reduction” in counterparty riskthe company said in its latest audit report. The market capitalization of its stablecoin Tether (USDT) grew from $66 billion to more than $82 billion in the same period. The company raised its US Treasury bills to a new high of more than $53 billion, or 64% of its reserves.. Combined with other assets, USDT is now backed by 85% cash, cash equivalents, and short-term deposits. Owned by Hong Kong-based iFinex, Tether has fought negative allegations about its finances. The company was fined $18.5 million by the New York Attorney General’s Office for misrepresenting the fiat backing of its reserves in 2021.
Crypto Community Reacts to Ledger Wallet Recovery Passphrase Service
Ledger’s latest feature has sparked discontent among the crypto community. Known as Ledger Recover, the company’s recovery solution for hardware cryptocurrency wallets offers a safeguard in case users lose their seed phrase. However, the concept has angered many members of the crypto community, including security specialists. The service employs a technique in which the user’s seed phrase is split into three encrypted fragments, each of which is sent to different external entities.. These entities will be able to reconstruct the encrypted keys. The community brought up the Ledger data breach in 2020, which exposed users’ email and postal addresses, as well as their phone numbers. Some believe that the recovery service put a backdoor in the seed phrases.
First they exposed mailing addresses, phone numbers, and email addresses of their customers…
And now they’ve put a back door into seed phrases.
It’s time to say goodbye to @Ledger ✌️ https://t.co/FsZw1jUt6h
—Chris Dunn (@ChrisDunnTV) May 16, 2023
First they exposed the mailing address, phone numbers and email addresses of their customers…
And now they’ve put a back door into the seed phrases.
It’s time to say goodbye to Ledger
OpenAI CEO in “advanced talks” for $100 million funding for Worldcoin
The bear market does not stop the financing of Worldcoin. The company co-founded by Sam Altman, CEO of OpenAI, is in “advanced talks” to secure $100 million in funding for Worldcoin, a project to create a collectively owned global cryptocurrency. Worldcoin is preparing to launch its blockchain protocol and start recording transactions in “the next six weeks”, after operating in a beta phase. Recently, he launched his own gas-free cryptocurrency wallet for verified people.
Before you go: How will lower interest rates benefit bitcoin?
Cointelegraph analyst and writer Marcel Pechman explains how lower interest rates in the United States will ultimately benefit Bitcoin (BTC) and the cryptocurrency market. Pechman also delves into Argentina’s economic crisis: Along with hyperinflation, the Latin American country has seen its local currency, the peso, fall 70% in recent years, boosting demand for US dollars, gold and bitcoin.
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