With the Bitcoin (BTC) halving more than a year away, don’t expect the crypto industry narratives to change anytime soon. No, the bear market is still in full swing, and the negative headlines show no sign of abating.
This week, the parent company of Silvergate Bank announced that it would close and liquidate the crypto bank “in light of recent industry and regulatory developments.” This is no surprise after most of Silvergate’s high-profile partners left the company when regulators came knocking.
This issue of Crypto Biz documents the voluntary liquidation of Silvergate, a new Alameda Research lawsuit targeting the Digital Currency Group (DCG), and “stale” Tether allegations from The Wall Street Journal.
Silvergate Capital Corporation to “voluntarily liquidate” Silvergate Bank
After months of uncertainty, the parent company of Silvergate Bank announced on March 8 that would cease its operations and liquidate his remaining assets. Although this was a new blow to the cryptocurrency sector, Silvergate Bank’s days were already numbered. According to various news, Silvergate Bank had been trading with the Federal Deposit Insurance Corporation (FDIC) to avoid closure. Apparently those talks went nowhere. Like other cryptocurrency companies, Silvergate’s problems started with the collapse of FTX and ended with regulators investigating the bank’s alleged involvement in Sam Bankman-Fried’s doomed empire. By the time Silvergate went under, companies like Coinbase, Paxos, Gemini, Galaxy Digital, and BitStamp had already cut ties with the institution.
Alameda Research Files Lawsuit Against Grayscale Over Its “Self-Trade Ban”
Here’s a headline you probably didn’t expect: a stream Alameda Research sues Grayscale Investments and its owner, Digital Currency Group, for their exorbitant commissions and his refusal to unlock shareholder swaps. The lawsuit, filed in Delaware, alleges that Grayscale collected more than $1.3 billion in management fees, allegedly violating trust agreements. The company also “made excuses” to prevent shareholders from redeeming their shares. The lawsuit seeks to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum trusts.” […] and realize over a quarter of a trillion dollars in asset value for the clients and creditors of the FTX Debtors.” These types of allegations against DCG and Grayscale are nothing new. In January, Bitcoin billionaire Cameron Winklevoss, accused DCG CEO Barry Silbert of of orchestrating “a carefully crafted campaign of lies” to hide a hole in a partner company’s balance sheet.
1/ FTX CEO John Ray enters the ring.
FTX filed a lawsuit against Grayscale and its parent company.
This is a surprise.
John Ray is turning over every rock – including legal challenges to Grayscale’s model – to maximize recoveries for FTX creditors.https://t.co/x1xl89B0cP
— Ram Ahluwalia, crypto CFA (@ramahluwalia) March 6, 2023
FTX CEO John Ray enters the ring.
FTX filed a lawsuit against Grayscale and its parent company.
This is a surprise.
John Ray is doing everything possible – including legal challenges to Grayscale’s model – to maximize recoveries for FTX’s creditors.
Canaan, maker of Bitcoin ASIC miners, reduced its revenue by 82% in the fourth quarter
In another sign of the times, Chinese Bitcoin miner and maker Canaan reported a massive drop in revenue during the fourth quarter. Company sales plummeted 82.1% year-on-year to $56.8 million. During the quarter, Canaan sold 1.9 million terahashes per second of computing power to Bitcoin miners, down 75.8% from a year ago. In terms of profitability, Canaan was in the red during the quarter, with a loss of USD 63.6 million. Overall, Canaan looks healthy enough to withstand a crypto bear market that could last for the rest of the year. The company currently has USD 706 million in total assets against USD 67 million in liabilities.
Tether lashes out at the WSJ for “stale accusations” of falsifying documents to open bank accounts
Here’s How You Know The Bear Market Isn’t Over: The Mainstream Media Attacks against stablecoin issuer Tether They show no signs of letting up. If you have been in the world of cryptocurrencies long enough, you will know that Tether is the favorite conspiracy theory of the industry because people love to doubt the company’s guarantees, the composition of its reserves and its association with the Bitfinex cryptocurrency exchange. This week, a known enemy of Tether alleged that the stablecoin issuer falsified documents and used shell companies to gain access to the banking system. According to The Wall Street Journal, Tether and Bitfinex falsified sales and transaction invoices as part of a ploy to open bank accounts. On the same day the news was published, Tether responded by stating that the article was based on “long outdated allegations” and that they were “totally inaccurate and misleading.”
I’m at the Plan B anniversary in #lugano
So much energy and people excited to talk about #Bitcoin
While I was on stage I heard some clown honks, pretty sure it was WSJ.
As always ton of misinformation and inaccuracies. Poor guys, must be difficult to be them but need better media.— Paolo Ardoino (@paoloardoino) March 3, 2023
I’m at the PlanB anniversary in Lugano
So much energy and people excited to talk about Bitcoin
While I was on stage I heard some clown honks, I’m sure it was WSJ.
As always tons of misinformation and inaccuracies. Poor guys, it must be hard to be them, but they need to improve their means of communication.
Before you go: How will the Silvergate implosion affect the cryptocurrency market?
The fallout from the FTX collapse continues to impact crypto markets. Now, crypto-friendly lender Silvergate Bank is on the brink of insolvency after reporting a $1 billion net loss in the fourth quarter. That’s not the worst of it, though. Several major crypto companies, including Coinbase, Circle, Paxos, Galaxy Digital, MicroStrategy and Tether, have distanced themselves from the company as the United States Department of Justice investigates its involvement in the FTX debacle. On this week’s Market Report, I sat down with fellow analysts Marcel Pechman and Joe Hall to discuss how Silvergate could impact crypto sentiment. You can watch the full replay below.
The consequences of the FTX collapse continue to affect the crypto market. Now pro-crypto lender Silvergate Bank is on the brink of insolvency after reporting a $1 billion net loss in the fourth quarter. But that is not the worst. Several large cryptocurrency companies, including Coinbase, Circle, Paxos, Galaxy Digital, MicroStrategy and Tether, have distanced themselves from the company while the US Department of Justice investigate their involvement in the FTX debacle. in the edition of The Market Report Earlier this week, I sat down with fellow analysts Marcel Pechman and Joseph Hall to discuss how Silvergate could affect the stance towards cryptocurrencies. You can watch the full replay below.
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