Binance.US One Step Closer to Acquiring Voyager Digital’s Assets in a $1.3 Billion Deal
Bankrupt crypto lender Voyager Digital has received court approval to sell its assets and transfer its customers to Binance.US in a deal valued at $1.3 billion. However, the deal faces additional hurdles before it becomes final.
Approval by US Bankruptcy Judge:
The restructuring plan built around the Binance.US acquisition has been approved by US Bankruptcy Judge Michael Wiles in a hearing in New York. Binance.US has agreed to pay $20 million in cash to Voyager and to take on crypto assets deposited by Voyager customers. The customers’ crypto assets, valued at $1.3 billion in February, account for the bulk of the deal’s valuation, according to Voyager.
Objection by SEC:
SEC attorney William Uptegrove objected to the acquisition, stating that SEC investigators believe Binance.US is operating an unregistered securities exchange. However, the objection was overruled by the judge.
Additional scrutiny from CFIUS:
The deal also faces additional scrutiny from the Committee on Foreign Investment in the United States (CFIUS), which is investigating national security risks associated with foreign investment in Voyager.
Review of new questions:
While the approval of Voyager’s plan allows it to begin transferring customer accounts to Binance, Voyager needs up to four weeks to review new questions about Binance.US’s commitment to the acquisition, Binance.US’s regulatory compliance, and the security of Binance.US customer deposits.
Recovery of customer deposits:
Voyager estimates the sale will allow customers to recover 73% of the value of their deposits at the time of Voyager’s bankruptcy filing. Once the deal closes and Voyager’s customers have Binance.US accounts in place, they will be able to make withdrawals for the first time since Voyager froze their accounts last summer.
FTX’s Alameda Research:
Regulators from Texas and New Jersey have warned those benefits could be significantly damped if FTX’s Alameda Research succeeds in clawing back $445 million in loan repayments made before its own bankruptcy filing in November.
Binance.US has cleared a major hurdle in its effort to acquire the assets of bankrupt crypto lender Voyager Digital in a deal worth over $1 billion after Michael Wiles, a bankruptcy judge in the Southern District of New York, overruled the various objections to the proposed acquisition. However, the deal still faces additional scrutiny from the Committee on Foreign Investment in the United States (CFIUS).
Will Citadel Step up And Save a Drowning Silvergate? Here’s What To Know
The cryptocurrency industry is on edge once again as leading crypto-friendly bank Silvergate is on the verge of failure, just 4 months after the collapse of FTX. Fear and uncertainty have taken over the markets as some of the largest players in the sector visited the bank.
Since the FTX collapse caused a run on deposits, Silvergate experienced a problem the previous year. The withdrawals were a factor in Silvergate’s almost $1 billion loss in the last three months of 2022.
The release of the publicly traded bank’s 2022 annual report has been postponed. It acknowledged having “going concerns” about how it would make ends meet. In order to assess “internal controls over financial reporting,” Silvergate has asked the Securities and Exchange Commission (SEC) for more time.
The audit of the bank’s fourth quarter financials has not yet been signed by Crowe LLP, Silvergate’s financial auditors. As FTX failed, customers withdrew more than $8 billion in deposits from Silvergate.
Several providers of digital assets are actively severing their ties with Silvergate. Circle, a USDC issuer, recently declared that it was “unwinding” its partnership with Silvergate, which would have an effect on some of its services. Coinbase announced that it would stop using Silvergate to handle deposits and withdrawals in the meantime.
However, amid the rising concerns, it is rumored that Citadel Securities, which already has a stake in the American bank, will step in to save the day. Andrew said on Twitter that Citadel might put more money into Silvergate to help it out of its liquidity crisis.
He wrote on Twitter, “UPDATE: Internal rumors at Silvergate $SI that Citadel could step up and bail them out; cash infusion where capital shortfalls exist. Citadel Securities is the worlds largest market maker and owns 5.5% of Silvergate Bank $SI.”
Ripple Lawyer Asks Gary Gensler to Step Down from Token Securities Cases
Gary Gensler is a US public servant and financial regulator who now serves as the Head of the Securities and Exchange Commission (SEC). With his recent regulatory measures, Gensler has often come under fire. Senator Tom Emmer of Minnesota has criticized him for his regulatory flaws.
Others have expressed their disapproval of the manner the SEC is conducting the case against Ripple and LBRY. Also, with regard to the pointless raids and their failure to stop the entire FTX scandal.
Gary Gensler, the head of the United States Securities and Exchange Commission (SEC), outlined his reasoning for thinking that all crypto tokens other than bitcoin are securities. This, needless to say, has received plenty of criticism. Let’s explore.
Alderoty slams Gensler
In a recent tweet, the Chief Legal Officer of Ripple, Stuart Alderoty described how Chair Gensler had once more declared that all cryptocurrencies, with the exception of Bitcoin (BTC), are unregistered securities. He is now required to abstain from voting in any enforcement case that brings up that subject because he has already formed an opinion on the result for SEC v. Antoniu (8th Cir. 1989)
The question in SEC v. Antoniu was whether the commissioner’s ongoing involvement in the disbarment proceedings was an infraction of due process. The commissioner’s words on the stockbroker’s permanent ban from employment in the securities industry while the proceedings were ongoing, according to the court, showed that the commissioner had already made up his mind about the case.
Others support Stuart Alderoty
Attorney John Deaton, who represents thousands of XRP holders as an amicus curiae in the SEC litigation against Ripple, backed up Alderoty’s claims. Deaton called the Ripple lawyer’s position a “Brilliant move” and said it was important to bring it up in front of the House Financial Services Committee.
Another pro-XRP lawyer, Bill Morgan, affirmed Alderoty’s assertions and said that Gensler has persisted in making these allegations despite the fact that most cryptocurrencies have not been the subject of investigations.
Crypto lawyers weighed in on Gary Gensler’s statements about crypto regulation, claiming that the Securities and Exchange Commission lacks the legal authority to control the industry. Alexander Grieve, Jake Chervinsky, Logan Bolinger, Jason Brett, and Gabriel Shapiro are just a few of the industry insiders and attorneys who have shared their opinions.
Marc Fagel comes in support
Marc Fagel, a former regional director for the Securities and Exchange Commission, refuted these allegations by pointing out the distinction between an administrative proceeding and voting on enforcement measures. Fagel asserts that the SEC commissioners and Chair serve as judges in a litigated administrative process, which the SEC no longer brings. Yet, they defer to the courts when authorizing acts taken by the enforcement section. Fagel contends that the precedent does not hold because of this.
To conclude,
The SEC seems to be facing criticism for every step they take these days, but they keep following the same pattern. The absence of clear guidelines has led to issues.
SEC’s Request Denied In Court; Is Ripple One Step Closer To The Finish Line?
The ongoing litigation between Ripple and the SEC has kept everyone apprised of the latest developments. Nicole Tatz, an attorney who has been working with Brad Garlinghouse’s team from the beginning of the litigation, suddenly resigned from her role representing Ripple in the dispute.
The anticipation among investors that December would be a turning point of epic significance for Ripple was building steadily. The deadline for submitting summary judgment papers was extended to November 30, which raised everyone’s hopes.
The Chief Executive Officer of Ripple, Brad Garlinghouse, believes that the lawsuit will not go to trial and that it will be resolved in the first half of 2023. Everyone here is keeping their fingers crossed that the judge will rule in Ripple’s favor.
Judge Torres Grants Ripple’s Request
In a related development, presiding Judge Analisa Torres of the Ripple vs. SEC case has issued an order addressing the parties’ August motion to seal papers related to the expert challenges, generally known as Daubert Motions.
The order requested a decision that would seal and redact certain documents placed by the parties in an effort to exclude expert evidence, as requested by the U.S. Securities and Exchange Commission (SEC).
Ripple argued that its sealing petition would safeguard its highly private business information and the legitimate privacy rights of third parties, while the SEC claimed that its request was required to protect the identity of its expert witnesses.
To further safeguard their privacy and proprietary information, MoneyGram and an unnamed third party requested that some papers filed in support of the parties’ Daubert Motions be partially redacted.
In the SEC’s action against XRP, Judge Analisa Torres partially sided with the agency. As noted in the judgment, the court did not grant the commission’s request to exclude information about the consulting companies that assisted the commission’s expert witnesses. It does, however, approve the watchdog’s motion to redact the papers it submitted in support of its Daubert Motions.
In Conclusion
Ripple supporters are still in the dark since the date for the settlement is being challenged at this time. John Deaton, an advocate for XRP who is also an attorney, thinks the verdict will not be given until late April or early May 2023.
According to Deaton, the earliest possible date for the court to provide a decision would be March 31. This is due to the fact that there are many pages of documentation that need to be reviewed by the court before rendering a verdict.
Ripple may not necessarily be assured of a victory at the conclusion of the lawsuit as a result of the latest judgment made by Judge Torres, but this is undoubtedly a success for Ripple on a smaller scale.
Despite this, XRP buyers are keeping their positions open in the event that the lawsuit is decided in their favor. If Ripple were to prevail in this case, it would imply that XRP would be excluded from the definition of a security that the SEC has maintained for a significant amount of time.
Bitcoin Is Changing Finance And Why Toon Finance Is The Next Step
Even in a bear market, Bitcoin is still worth $16,000.00 a pop and that figure is simply no joke. Billionaires are buying Bitcoin and the billionaires that aren’t buying it are currently waiting for this bear market to bottom so they can buy it.
Everyone wants Bitcoin BTC and even those who don’t know about it won’t say “no” to you if you suddenly feel like giving them one.
Bitcoin has changed finance across the globe and we think that Toon Finance is the next step. Before anything else, what is crypto currency and what is Bitcoin?
What is Bitcoin BTC?
What is cryptocurrency?
Cryptocurrency is a digital asset that works as a medium of exchange. It uses cryptography to secure and verify the transfer of money and data between parties, making it highly secure. It uses blockchain technology which is a digital ledger of transactions recorded and stored on multiple computers around the world.
What is Bitcoin?
Bitcoin is the first decentralized cryptocurrency created in 2009 by an anonymous founder known as Satoshi Nakamoto. It is the most popular cryptocurrency to date with a market capitalization of over $120 billion.
Bitcoin is used all over the world as a medium of exchange, making it convenient for people to send and receive money with low transaction fees. It is also used as a store of value and increasingly seen as a digital gold due to its limited supply and decentralization.
Why does Bitcoin matter?
Bitcoin matters because it is a secure, decentralized currency that allows users to transact without needing to use a middleman. It offers freedom from government and reduces fees related to finance and financial services.
Bitcoin is more transparent and cheaper making it a go to for large companies and rich individuals alike to save a ton of money especially with fees that have to do with cash.
This token have shown the world a new way to do financing and is now worth over $16,000.00 and the price keeps increasing with Bitcoin BTC finding a new floor price every market cycle.
What makes Bitcoin unique?
Bitcoin is unique because it is the first and most popular digital currency. It enables fast, low-cost payments with no central authority or third party involvement. This makes deals more secure and private, and frankly, a lot cheaper.
Unlike other cryptocurrencies, Bitcoin only has a single purpose: to be a digital currency. This simplifies its use and makes it a more attractive medium for investment. Even though it’s been a problem that Bitcoin is now so expensive that people aren’t using it as a currency as much as intended, it still remains incredibly robust with a lot of supporters making it one of the best investment today.
What are the effects of Bitcoin to traditional finance?
Bitcoin has had a huge impact on traditional finance. It has revolutionized the way people view and use money, making transactions much faster, more secure, and actually transparent.
The problem with traditional finance is that it is marred with bureaucracy, fees and a lot of paperwork. With Bitcoin, these problems are eliminated as transactions are done peer-to-peer and all you need is an internet connection.
There are no use for banks, there is no need for human interaction, as long as you follow protocols and procedures, you are also 100% guaranteed to be safe.
More and more banks are popping up lately and they are exclusively online banks. This is most likely a direct result of Bitcoin and other cryptocurrencies like Ethereum ETH, PLC Ultima PLCU, and Toon Finance Token TFT.
Traditional finance is learning from DeFi or decentralized finance and growing due to it. This is an undeniable proof that Bitcoin’s future is bright when the immovable monoliths of traditional finance starts copying something.
But in order to get Bitcoin, you need to find out where to buy it first.
What are exchanges
An exchange is an online platform that allows users to buy and sell cryptocurrencies. There are a multitude of different exchanges with two categories for the most part, centralized exchange or CEX, or decentralized exchange or DEX.
Examples of centralized exchange are Binance, FTX, and Mt. Gox while examples of decentralized exchanges are Uniswap, Pancake Swap, and Toon Swap.
What is a centralized exchange?
A centralized exchange or CEX is a platform that acts as an intermediary between buyers and sellers. With a CEX, users have to deposit their tokens or fiat currencies into their “accounts” as centralized exchanges are NOT wallets. While centralized exchanges not being wallets are a known fact that is often forgotten, centralized exchanges benefit from you forgetting this fact so there is little to no reminder from them that centralized exchanges are meant to be nothing more but exchanges.
Centralized exchanges are rather dangerous as they NEED to be regulated, this is a must for centralized financial organizations making their actual role for crypto small albeit incredibly important. But despite the need for regulation for centralized exchanges or CEX, there’s barely any and the ones in place become more than nothing but a hindrance and sometimes even helping people like Sam Bankman-Fried evade jail time.
Because of the nature of centralized exchanges, you will always have to risk losing your money every time you make a deposit to your account (remember, it’s not your wallet but your account). This is the exact thing that happened with most central exchanges and the current poster boy for CEXs, Binance, is no exception to this vulnerability.
What is a decentralized exchange?
Decentralized exchanges, or DEXs for short, are platforms that allow users to trade cryptocurrencies without having to deposit their tokens to a “custodian”. Decentralized exchanges do not take a custodian role over your money making things that happened with FTX, Mt. Gox and what will likely happen with Binance in the future an impossibility.
While decentralized exchanges can still be hacked, the damage is absolutely nowhere near what occurs when someone working inside a centralized exchange that they’ve worked long enough in their lives and it’s time to take everyone else’s money.
Why is Toon Finance the future of Bitcoin BTC?
The answer is actually simple, it’s because Toon Finance has Toon Swap which is a DEX or decentralized exchange with its own unique set of features.
Unlike with central exchanges, trading Bitcoin on Toon Swap is safe and secure plus it’s also private. You can protect your Bitcoin while trading since Toon Swap takes a non-custodian role in the first place.
Investors are choosing Toon Swap over others because it has good prospects for the future especially since people can still get in while it’s early despite the fact that the token’s price practically doubled since the start of its ICO and people are still buying.
Why is Toon Finance’s Toon Swap better than other decentralized exchanges?
The answer why Bitcoin’s next level would be listing on Toon Swap and why Toon Swap specifically is because Toon Swap has all the features that other exchanges have but also has Space Battlegrounds which is its own p2e or play to earn aspect which allows for betting.
Players and spectators alike can earn money while playing and earn more with betting. This encourages massive token movement in the exchange making Toon Swap one of the biggest if not the biggest exchange there is once everything has been implemented.
This is obviously the best choice for Bitcoin’s future since it will benefit from secure and private trade while being in an exchange with massive movement.
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Jesse Powell To Step Up Down As CEO Of Kraken
The post Jesse Powell To Step Up Down As CEO Of Kraken appeared first on Coinpedia Fintech News
A Wednesday report by The Wall Street Journal disclosed that Jesse Powell has decided to step down from his role as CEO of Kraken, the cryptocurrency exchange.
Supposedly, Powell will be replaced by the company’s current chief operating officer, Dave Ripley. Although he has left behind the role as the head of the company, Powell has plans to continue playing an active role in Kraken as its biggest shareholder. He will be taking up the role of the chairman of the company’s board of directors.
Bitcoin (BTC) Might Drop To This Level If Buyers Don’t Step In!
The price of bitcoin is now hovering around $20,000 and has not changed significantly over the past few days. The resistance level at $20,600 is proving to be a barrier to the price, which has already been rejected in shorter time frames. In the ensuing hours, it is expected that the price will find it difficult to rise over this mark, and Bitcoin’s downward trend might continue.
Following a recent breakout from another range-bound trend on August 26, the price of bitcoin is currently exhibiting tight congestion. The most traded volume level since 2022, BTC is already below the point of control (POC) at $21,535.
If buyers do not enter the market due to the current scenario in the cryptocurrency markets, another leg down will occur, pushing the price of Bitcoin to the range low of $17,585. Investor purchasing pressure from those trying to acquire BTC at a reduced price may be able to halt this 12% decline.
This is more likely to happen soon than later from an on-chain standpoint. According to IntoTheBlock’s Global In/Out of the Money (GIOM) model, the resistance cluster at $23,629 is stronger than the immediate support level at $18,925.
The cluster comprises 2.73 million BTC that were bought by around 4.41 million addresses, whereas the former cluster only contains 673,210 addresses holding 421,840 BTC. According to this perspective, a downturn is more likely to happen, especially if selling pressure suddenly increases.
Conclusion
The coin has spent the entire week trading in a range between $20,500 and the support at $19,575, and it must break this range in order to determine the market’s future course. Almost 300 days have passed since the beginning of the current Bitcoin downturn, and BTC is currently down 70% from its all-time high levels. Unfortunately, it appears that there may yet be more suffering to come.