US gov challenges Binance.US’s $1B Voyager deal, Bittrex shuts down, Japan’s FSA warns unregistered crypto exchanges and more
Binance.US’s $1 Billion Voyager Acquisition at Risk: Legal Battle Unfolds Between Government and Crypto Giant
> District Judge Jennifer Rearden emphasized the need for a swift resolution to the dispute, as delays could incur monthly costs of up to $10 million for the estate.
> In March, U.S. Bankruptcy Judge Michael Wiles initially approved the sale. However, this week, Rearden decided to pause the approval to review objections raised by the U.S. Attorney.
> The objections center around the contract’s Exculpation Clause, which allegedly provides Voyager with immunity from breaches of tax or securities law. More here.
Bitcoin Shines Amid U.S. Banking Turmoil: Coinbase Research Highlights Crypto Resilience
> The report indicates that since mid-February, bitcoin has outperformed its fellow digital assets, with its dominance in the total crypto market cap rising to 47.7% from 43.9% in March.
> This surge in performance began early in the month, aligning with the onset of the U.S. banking system’s upheaval.
> According to the report, “part of the reason is that the stress in the banking system reinforced bitcoin’s store-of-value properties.”
> Additionally, since BTC largely operates outside the conventional financial system, “it offers a hedge against current conditions.” Details here.
Crypto Exchange Bittrex Closes US Business: Navigating the Challenging Regulatory Landscape
> Richie Lai, Bittrex co-founder, and US CEO expressed in a tweet that the existing US regulatory and economic landscape makes it “economically unviable” for the company to persist.
> Customers can withdraw their funds until the end of April, while Bittrex’s international operations will remain active.
> Bittrex joins other digital asset firms exiting the US market due to increased regulatory scrutiny.
> In December, crypto lender Nexo Inc. also withdrew from the US market following cease-and-desist orders from several states concerning its interest-earning products. Details here.
Foreign Crypto Exchanges Face Japan’s Scrutiny: Bybit, BitForex, MEXC Global, and Bitget in Focus
> According to the regulator, these exchanges were violating Japan’s fund settlement laws by “conducting crypto asset exchange business without registration.”
> The FSA also noted that the list of unregistered traders “does not necessarily indicate the current state of unregistered business.”
> Although Japan is developing new regulations for the cryptocurrency and Web3 industries, it has not imposed as strict restrictions on the sector as other larger economies like the United States, particularly following a tumultuous year for the markets in 2022. Full report here.
S&P Global Seeks DeFi Director: A New Era in Decentralized Finance Strategy
> The chosen candidate will collaborate with Chuck Mounts, S&P’s Chief DeFi Officer, to develop and execute the company’s strategies in the decentralized finance sector, as indicated in the job listing.
> S&P Global is searching for someone with a strong background in the crypto market and a profound understanding of the disruption it brings to both the company and its clients.
> The ongoing interest in decentralized finance from established firms like S&P Global demonstrates the sector’s resilience, despite the cryptocurrency market experiencing significant declines from its 2021 peaks and numerous bankruptcies impacting the industry. Details here.
Terraform Labs and its Aftermath
Seizure of $160 Million in Assets: The Collapse of Terraform Labs and its Aftermath
> As per an April 3rd report from the South Korean news source KBS, authorities have confiscated around 210 billion won, equivalent to $160 million, in assets related to former Terra employees, predominantly in the form of real estate holdings.
> It has been reported that prosecutors gained control over residential properties and other assets belonging to Kim Mo, former Terra vice president, and another unidentified executive, valued at approximately $60 million and $31 million, respectively. More here.
Huobi and Gala Games Commit $50 Million to Compensate GALA Token Loss Victims
> Huobi is allocating $25 million in cash and user benefits, which includes 15 million Tether (USDT) and equity compensation worth $10 million, to support the victims of the scheme.
> Meanwhile, Gala Games will provide $25 million worth of node licenses to affected users. Compensation for the victims is set to begin within the next week.
> This decision comes five months after an unauthorized actor minted $1 billion of pGALA, a wrapped version of GALA that trades on the BNB Chain.
> The bad actor then offloaded the tokens on decentralized exchanges, including PancakeSwap, causing GALA’s price to plummet by 94%. Continue here.
Bitcoin and Ether Navigate Range-Bound Trading as Altcoins Show Movement
Bitcoin (BTC) has consistently traded within its recent two-week range, fluctuating between approximately $27,200 and $28,400 on Monday.
> The leading cryptocurrency by market capitalization was lately valued at around $27,500, marking a decline of over 2% in the past 24 hours.
> BTC has experienced a nearly 70% increase this year, driven by a positive first quarter as investors’ optimism about inflation and other macroeconomic factors grew.
> Ether (ETH), the second most prominent cryptocurrency, also experienced a slight dip of 0.2% on Monday, with its price hovering near $1,787.
> ETH saw its value increase by 48% in the first quarter. In other altcoin news, the meme-inspired Dogecoin (DOGE), which has long been championed by Twitter CEO Elon Musk, experienced a 16.5% surge after the social media platform changed its logo to the dogecoin symbol, replacing the iconic blue bird.
> Additionally, payment provider Alchemy Pay’s native ACH token climbed 7% following a Monday report that the firm had received a $10 million investment from market maker DWF Labs, valuing the company at $400 million.
