Daily Crypto News | July 19th, 2022

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Welcome to Barmy’s Daily Crypto News – July 19th, 2022

1. Bankrupt Three Arrows Capital In $3.5B Debt, $2.3B Owed To Genesis

According to court filings, Three Arrows Capital (3AC) owes a staggering $3.5 billion to 27 distinct businesses, including Blockchain.com, Voyager Digital, and lender Genesis Global Trading.

Affidavits that describe the insolvency and liquidation of the cryptocurrency hedge fund provided the specifics. Teneo, the company contracted to manage 3AC’s liquidation, submitted them on July 7 and made them public on Monday.

According to the documents, 3AC did not repay loans and repeatedly missed margin calls with lenders, which caused its investment accounts to drop below necessary levels and not be topped up.

Genesis, a business inside the Digital Currency Group, loaned 3AC the most of the $3.5 billion total. According to the court records, it passed the now bankrupt company $2.36 billion in a loan that was under-collateralized and had an 80% margin requirement.

2. Premint Hack Accumulated 320 NFTs, Or $400K in Ethereum

In one of the biggest such attacks this year, hackers broke into the well-known NFT registration platform Premint on Sunday and made off with 320 stolen NFTs and more than $400,000 in profit.

The Premint website was hacked on Sunday, according to investigation by blockchain security company CertiK, using malicious JavaScript code. Then, apparently as an additional security step, they built a pop-up within the website that asked visitors to confirm their ownership of their wallet.

Following their swift realization that the pop-up was fraudulent, numerous users immediately took to Twitter and Discord to alert others not to follow its directions. However, the hackers had already tricked a number of Premint customers within a matter of minutes.

3. Dutch Central Bank Imposed a $3.4M Fine On Binance

De Nederlandsche Bank (DNB), the Dutch central bank, announced on Monday that Binance Holdings Ltd. has been penalized for providing cryptocurrency services without registering as required by law.

The DNB explained that the administrative charge of 3.325 million euros ($3.4 million) was imposed on the bitcoin exchange on April 25, adding: “The fine was imposed because Binance offered crypto services in the Netherlands without a legally required registration with DNB. That’s prohibited.”

According to the DNB, Binance received a category three punishment, the highest level of enforcement available from the central bank, “due to the gravity and degree of culpability of the noncompliance.” The regulator emphasized that the DNB views Binance’s “violations to be very serious” and mentioned that the breach occurred over a “prolonged period,” from May 2020 until at least December 2021.

4. BlockFi To Offer Employee Buyout 1 Month After Cutting Staff

BlockFi, a cryptocurrency lender that just closed a $400 million loan and possible purchase conditions with cryptocurrency exchange FTX, is providing staff buyouts as a covert means to cut down on manpower. One month after reducing its workforce by 20%, the change was made.

According to a BlockFi employee, the company will provide workers with 10 weeks of paid vacation and 10 weeks of COBRA, or Consolidated Omnibus Budget Reconciliation Act, health insurance, in exchange for their resignation. The insider also said that the business had convinced workers that they would be entitled for unemployment benefits if they agreed to the buyout.

5. US Senator Claims Users Are Too Vulnerable Against Crypto Scams

After a number of cryptocurrency companies sought bankruptcy protection this week, U.S. Senator Elizabeth Warren (D-MA) expressed her concerns about bitcoin trading in an interview with Yahoo Finance Live.

She stressed the need for action from the U.S. Securities and Exchange Commission (SEC) and said: “Congress needs to act, but the SEC has a responsibility to use its authorities to put guardrails in place and crack down on crypto actors that break the rules.”

After restricting withdrawals last week, cryptocurrency lender Celsius Network sought bankruptcy protection. Another cryptocurrency lender, Voyager Digital, filed for bankruptcy protection a week earlier. The company attributed the loan default to the failed crypto hedge fund Three Arrows Capital and the contagion in the cryptocurrency markets.

Warren emphasized: “Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.”

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