Tag: withdrawals,
Banking fears spark £4.8bn withdrawals as Britons take record amounts of cash from accounts
Daily Crunch: Binance reopens after bug forces platform to suspend spot trading, deposits and withdrawals
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Daily Crunch: Binance reopens after bug forces platform to suspend spot trading, deposits and withdrawals by Christine Hall originally published on TechCrunch
Binance Halts UK Customer Deposits and Withdrawals
Binance suspended withdrawals and deposits for any new customers using British pounds late on Monday, and according to Bloomberg the crypto exchange plans to suspend all GBP transactions for all customers starting May 22. The company is reportedly working to find “an alternative solution” to again allow customers to trade GBP for crypto.
Read more of this story at Slashdot.
Celsius Used New Customer Funds To Pay For Withdrawals
Despite repeatedly saying he was not selling CEL, and despite employees internally saying the token’s true value was zero, Mashinsky sold 25 million tokens to the value of at least $68.7 million between 2018 and bankruptcy, Pillay said. Co-founders Nuke Goldstein and S. Daniel Leon are cited as making CEL sales valued at $2.8 million and $9.74 million respectively. Pillay said Mashinsky’s claims to the media and on social media to “always have 200% collateral” were “far off the mark,” with 14% of Celsius’ institutional loans wholly unsecured in December 2020. That figure rose to nearly 36% by mid-2021 — and even then some of the collateral was in unstable assets such as FTX’s FTT token, Pillay said.
“What Celsius and Mr. Mashinsky never did was correct the record after the fact for the thousands of live audience members who heard these misstatements or for those who watched the recorded videos on YouTube before they were edited,” Pillay said. Pillay also uncovered “significant tax compliance deficiencies” in the company, saying that its mining arm may owe over $23.1 million in use taxes, and has reserved $3.7 million in liability in U.K. value-added tax.
Read more of this story at Slashdot.
US bank Silvergate hit with $8bn in crypto withdrawals
FTX Subsidiary Plans Restarting Withdrawals in Japan, as US Requests Review of Fraud Allegations
“If the plan works out, the collapsed crypto exchange’s users in Japan might be some of the first customers to get their money back….”
In a notice posted on its website, FTX Japan said it was able to confirm with the company’s bankruptcy lawyers in the U.S. that Japanese customers’ funds “should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law.” FTX Japan had been working on the plan to restart withdrawals for the last two weeks, and says it was approved by the FTX Trading management team….
“As part of the plan, we are incorporating controls, security audit, reconciliations and reviews to put in place a robust and secure process,” the notice said.
Meanwhile, America’s Department of Justice “has requested that an independent examiner be appointed to review ‘substantial and serious allegations of fraud, dishonesty’ and ‘incompetence’,” reports CNBC:
FTX’s bankruptcy case demands an independent review, the Department of Justice said, because of allegations of fraud and dishonesty which could damage the entire crypto industry. Andrew Vara, the U.S. bankruptcy trustee for FTX’s case, said Sam Bankman-Fried and his team mismanaged the company or potentially engaged in fraudulent conduct.
The DOJ is seeking an independent examiner to investigate what happened…
Former federal prosecutor Renato Mariotti told CNBC that the move “shows a level of interest and attention that they’re paying to this that should be troubling to Mr. Bankman-Fried.”
Read more of this story at Slashdot.
Crypto: Crypto lender BlockFi pauses withdrawals in wake of FTX’s collapse
Zipmex gets 3 month protection in Singapore amid halted withdrawals
Troubled crypto exchange Zipmex has time to come up with a restructuring plan by Dec. 2 after halting withdrawals in July.