• The European Commissioner for financial services, Mairead McGuinness, has commented on the limited impact of Silicon Valley Bank’s (SVB) collapse on the EU.
• Despite her reassuring remarks, stocks of Europe’s largest banks still dropped by 10% on March 15 due to Credit Suisse’s stock hitting an all-time low.
• The Saudi National Bank decided not to bail out the beleaguered bank after a PwC audit revealed „material weaknesses“ in its internal controls.
Silicon Valley Bank’s Collapse
European Commissioner Mairead McGuinness has said that the collapse of Silicon Valley Bank (SVB) has had a „limited impact“ on the European Union (EU). However, authorities must still stay alert to events as they unfold.
Credit Suisse Drags Down Banking Stocks
Despite McGuinness‘ reassuring remarks, stocks of Europe’s largest banks still plunged by as much as 10% on March 15 due to Credit Suisse’s all-time low stock prices. This was caused when Saudi National Bank announced it could no longer provide bailout assistance after a PwC audit revealed „material weaknesses“ in Credit Suisse’s internal controls.
European Commission Monitoring Situation
The European Commission (EC) is monitoring the banking situation in the United States and hopes to learn important lessons from this event. While EU authorities expect minimal impact from SVB’s collapse, McGuinness warned that rising inflation remains a key threat.
Swiss National Bank Offers Assistance
As of writing, Credit Suisse shares have seen marked recovery on Thursday after news of assistance from Swiss National Bank emerged.
In conclusion, although Silicon Valley Bank’s collapse has had limited immediate effects on Europe, authorities should remain aware and vigilant in order to protect against further risks and threats posed by ongoing developments in US banking systems.
• Silvergate Bank announced its voluntary liquidation and U.S. Senator Elizabeth Warren blamed “crypto risk” for the bank’s downfall.
• Critics dismissed Warren’s opinion as „terribly misinformed“ and claimed that she is „tossing out egregious accusations.“
• Crypto proponents offered different perspectives on Silvergate Bank’s failure, with some criticizing Warren for her claims of a „massive crypto scandal.“
Silvergate Bank Announces Liquidation
Silvergate Bank announced its voluntary liquidation on March 9th, 2021.
Senator Elizabeth Warren Blames “Crypto Risk”
U.S. senator Elizabeth Warren is attributing the financial institution’s downfall to „crypto risk,“ claiming she had previously warned about Silvergate. However, some critics are dismissing Warren’s opinion as „terribly misinformed“ and claim that she is „tossing out egregious accusations.“
Crypto Proponents Offer Different Perspectives
Hours after Silvergate Bank announced its liquidation, U.S. senator Elizabeth Warren (D-MA) tweeted about the financial institution’s demise and referred to cryptocurrencies as risky in her statement. This was met with criticism almost immediately after its publication from those who disagreed with her views on the matter and argued that she was blaming objects rather than individuals or businesses for failure.. Crypto CFA Ram Ahluwalia offered a different perspective on the Silvergate situation, suggesting that it faced a bank run which led to its ultimate downfall due to lack of trust among customers and not necessarily because of cryptocurrency trading activity alone.
Critics Dismiss Senator’s Claims
Some critics are challenging Senator Warren’s claims by accusing her of starting the Silvergate bank run through her letter containing numerous accusations regarding a supposed “massive crypto scandal” and being “terribly misinformed while tossing out egregious accusations” about cryptocurrencies causing harm to investors rather than crypto business operators.
The discussion around Silvergate Bank’s liquidation has sparked debate between those who believe in Senator Elizabeth Warren’s view that “crypto risk” caused the financial institution’s downfall versus those who disagree with this notion and propose alternative perspectives such as lack of trust among customers or inadequate due diligence from regulators leading up to Silvergate Bank’s collapse .
•CoinEx Charity has been funding children in poor areas since 2022, helping over 20,000 kids to go back to school.
•The Human Development Foundation (HDF) recently released a report thanking CoinEx Charity for its donations which have been used to purchase school uniforms, shoes, books and other essential items.
•The funds provided by CoinEx Charity have enabled the children living at the Mercy Centre to break the cycle of poverty and gain access to better education opportunities.
CoinEx Charity Empowers Children’s Education Through Charitable Giving
CoinEx Charity Funds Over 20,000 Children
Since last year, CoinEx Charity has been working hard to help children in poor areas get back into school and continue their education. To date, more than 20,000 children have benefited from the charity’s generous donations.
Human Development Foundation Releases Report on Impact of Donations
Recently, CoinEx received a report from HDF – a charitable organization based in Thailand – expressing gratitude for its support. The funds provided by CoinEx were used to purchase school uniforms, shoes and other essential items for the students living at the Mercy Centre. This assistance has enabled them to break free from poverty and gain access to better education opportunities.
Mercy Centre Preparing Kids For A Brighter Future
This February marks the end of academic studies for this year’s batch of students at the Mercy Centre; they will soon graduate or move up to a higher grade level. HDF noted that despite all odds, each child is learning and thriving with love and warmth courtesy of CoinEx’s generous donations which also covered daily teaching supplies for all students at the centre.
CoinEx & HDF Working Together To Improve Lives Of Children In Need
By providing protection, care and appropriate education for these vulnerable kids through scholarships funded by CoinEx charity HDF is preparing them for a future full of opportunity and hope. Both organizations are dedicated towards creating a brighter future for these children who might not otherwise have had access to quality education without such support systems in place.
Overall this report paints an encouraging picture; it’s clear that both HDF and CoinEx are committed towards making sure these kids don’t miss out on important educational opportunities due to their financial situation or backgrounds.
• Four Russians have been charged with operating a crypto pyramid and Ponzi scheme called Forsage.
• Forsage allegedly raised around $340 million from its victims and the founders face up to 20 years in prison if convicted.
• U.S authorities confirmed that over 80% of Forsage investors received fewer ether (ETH) back than they had invested in its Ethereum program.
Crypto Fraudsters Charged
Four Russian citizens have been indicted for running a cryptocurrency pyramid and Ponzi scheme named Forsage, which reportedly defrauded investors of millions of dollars. If convicted, the defendants would face a maximum penalty of twenty years in prison for their roles in the decentralized finance platform.
Forsage Scheme Details
The federal grand jury in the District of Oregon issued an indictment on Wednesday, charging the founders of the investment platform with conspiracy to commit wire fraud. The scheme was advertised as a decentralized matrix project based on network marketing and smart contracts, but instead it was setup as a fraudulent investment opportunity that defrauded people around the world out of approximately $340 million. The four Russian nationals used aliases while promoting the platform through websites and social media as a legitimate business venture with low risk and high returns.
Smart Contracts Used To Divert Funds
According to court documents, smart contracts on Ethereum, Binance Smart Chain, and Tron blockchains were deployed by the defendants to carry out their scheme. An analysis conducted by blockchain forensics revealed that more than 80% of Forsage investors received less ether (ETH) back than what was initially invested into its Ethereum program. Furthermore, at least one smart contract was found to be used for diverting investor funds into cryptocurrency accounts controlled by the founders.
Justice Department Investigates
U.S Attorney Natalie Wight for the District of Oregon stated that this indictment is a result of months-long investigation involving multiple law enforcement agencies working together to bring charges against foreign actors who took advantage of new technology to commit fraud in an emerging financial market.
The four Russians are each charged with conspiracy to commit wire fraud and if convicted they could be facing up to twenty years imprisonment for their actions related to Forsage scamming investors out of millions of dollars worldwide via cryptocurrency networks such as Ethereum’s Smart Contracts system .
• A former executive of FTX allegedly purchased discounted FTX tokens (FTT) for a charity, Polaris Ventures, before they were available to the public at $0.05 per unit.
• Anonymous sources claim that Polaris Ventures made millions from selling the FTT after it began trading publicly at $1 in 2019 and 2020.
• Ruairi Donnelly’s lawyer claims that the FTT was not FTX’s funds, but intended to pay his client’s unpaid wages.
Accusations Against Former FTX Executive
A report from the Wall Street Journal (WSJ) has accused a former executive of FTX, Ruairi Donnelly, of donating discounted FTX tokens (FTT) to charitable organization Polaris Ventures before they became available to the public at $0.05 per unit.
Polaris Ventures Allegedly Made Millions From Token Sale
Anonymous sources have claimed that Polaris Ventures made millions of dollars by selling these tokens after they began trading publicly at $1 in 2019 and 2020 while Donnelly was still working at FTX. The same sources concluded that most of its wealth initially came from this transfer in 2019.
Donnelly’s Lawyer Responds to Accusations
Donnelly’s lawyer has stated that the FTT did not belong to FTX and was intended to pay his client’s unpaid wages instead. They also noted that $30 million of Polaris‘ funds were stuck on FTX and that it is currently a major creditor in their bankruptcy case.
Alleged Attempt To Sell Bankruptcy Credits For Low Value
Anonymous sources cited in the report further suggest that Donnelly is attempting to sell bankruptcy credits for a fraction of their value.
It remains unclear if any illegal activity took place or if Donnelly committed any wrongdoing while carrying out his duties as an executive at FTX or with regards to Polaris Ventures donations; however, he may be liable for investigation if evidence appears otherwise.
• North Korea has managed to steal more cryptocurrency last year than in previous years, according to a draft U.N. report.
• Cybercrime groups linked to North Korea have gotten hold of crypto worth over $1 billion in a year.
• Reports suggest that hackers controlled by Pyongyang acquired crypto worth $630 million during the studied period and that 10% of the total was extracted from accounts of South Korean companies and individuals.
North Korea Stole Record Amount of Crypto Assets in 2022
The regime in North Korea has managed to steal more cryptocurrency last year than in previous years, according to a draft U.N. report. Despite the difference between quoted estimates, the authors conclude that 2022 was a record-breaking year for crypto theft, to be blamed on the hermit state.
Cybercrime Groups Linked to North Korea Acquire Crypto Worth Over $1 Billion
North Korea has stolen more crypto assets in 2022 than any other year, according to a United Nations report which is set to be released by the end of this month or early March. The document, seen by Reuters and Nikkei Asia, reveals how the isolated country is raising funds through cyberattacks and circumvention of international restrictions. It was submitted to the U.N Security Council’s committee on North Korea sanctions on Friday and is still confidential at this point in time. Estimates suggest that hackers controlled by Pyongyang acquired crypto worth $630 million during the studied period while cybersecurity firms believe it exceeded $1 billion – making it higher than any other year for DPRK actors involved with crypto theft .
Hackers Extract 10% from South Korean Accounts
Data compiled by Chainalysis shows that North Korean-linked hackers stole around $1.7 billion worth of coins last year alone – with intelligence authorities suggesting 10% was taken from accounts belonging to South Korean companies and individuals . It is believed these funds were laundered and used for financing nuclear missile development programs within the country .
Sanctions Monitors Urge Action
The independent sanctions monitors are urging governments worldwide take action against such illicit activities stating: „We call upon all states…to protect their financial services sector against these continued threats“ as well as taking steps towards countering money laundering activities associated with cryptocurrencies .
It is clear that North Korea continues its attempts at circumventing international restrictions through cybercrime and stealing large sums of cryptocurrency – having stolen more virtual money last year than any other before it . Governments must take steps towards protecting their financial services sectors against such threats as well as money laundering activities associated with cryptocurrencies – particularly those originating from North Korea .
• Massachusetts-based Bankprov has announced that it will no longer offer loans secured by cryptocurrency mining rigs.
• Bankprov holds approximately $41.2 million in cryptocurrency-collateralized loans, with about $26.7 million of the debt backed by crypto-mining equipment.
• Several crypto-mining companies have sought bankruptcy protection or reorganized tens of millions in debt due to the crypto winter.
Bankprov, a subsidiary of Provident Bancorp based in Amesbury, Massachusetts, has announced that it will no longer offer loans secured by cryptocurrency mining rigs. Bankprov revealed in a filing with the US Securities and Exchange Commission (EX-99.1) that revenue from its digital asset loan portfolio has been decreasing and that new loan originations backed by mining equipment have been discontinued.
Bankprov holds approximately $41.2 million in cryptocurrency-collateralized loans, with about $26.7 million of the debt backed by crypto-mining equipment. This type of loan became popular in 2021, but the crypto winter created significant pressure on the industry. According to Luxor executive Ethan Vera, by the end of June 2022, around $4 billion in loans backed by mining machines were under financial strain.
A number of crypto-mining companies have either sought bankruptcy protection or reorganized tens of millions in debt. In September 2022, Compute North filed for bankruptcy. Two months later, Core Scientific also filed for bankruptcy. Other mining operations are attempting to restructure debt. Greenidge Generation announced Tuesday that it has reorganized $11 million in debt with B. Riley. Bankprov stated that it repossessed ASIC mining equipment from undisclosed crypto-mining operations in September.
The decision to no longer offer loans secured by cryptocurrency mining rigs is part of Bankprov’s overall strategy to reduce its digital asset lending portfolio. Bankprov is committed to providing customers with innovative financial services while managing risk and maintaining a sound capital structure.
• A Washington, D.C. townhome tied to disgraced FTX Co-Founder Sam Bankman-Fried has been listed on the market for roughly $3.28 million.
• The property was purchased by Bankman-Fried’s brother’s nonprofit, Guarding Against Pandemics, for the same price it is selling for today.
• It is suspected that the property was used for wining and dining political elite in the name of „pandemic prevention“.
A four-bedroom Washington townhome linked to the FTX co-founder Sam Bankman-Fried (SBF) has been listed on the market for approximately $3.28 million. This luxurious 4,100-square-foot property was purchased by SBF’s brother’s nonprofit, Guarding Against Pandemics, for the same price it is selling for today. The residence is believed to have been leveraged „to serve as a D.C. base for the FTX crew to wine and dine the political elite“ in the name of „pandemic prevention“.
The townhome was constructed in 2017 and features five bathrooms, four gas fireplaces, and all bedrooms are en suite. Realtor.com also reported on the listing, noting that it has a Victorian brownstone exterior. Photos of the property were taken by Pearson Smith Realty.
Just prior to the collapse of FTX, the Washington home hosted two parties specifically for bureaucrats and donors. The house is now being sold with an asking price of $3.28 million, the same amount that Guarding Against Pandemics paid for the property back in April 2022.
Adding to the controversy surrounding Bankman-Fried and FTX, Bitcoin.com News had previously reported on the so-called „effective altruist’s“ $40 million penthouse, which was listed for sale three days after the company went bankrupt. This penthouse was located in the Bahamas, which is where a great deal of Bankman-Fried’s real estate investments were made.
It is now clear that Bankman-Fried’s luxurious Washington townhome is on the market, and with the controversies and bankruptcies that have surrounded the FTX co-founder, it will be interesting to see if the property is sold for its asking price.
• Georgia’s central bank, the National Bank of Georgia, is planning to launch a digital lari pilot in the first half of 2023.
• The NBG will release a whitepaper to allow potential partners to make their proposals for the pilot.
• The purpose of the digital lari is to ensure financial and price stability and enable better access to digital technologies.
The National Bank of Georgia (NBG) is preparing to launch trials for its digital lari project in the first half of 2023. In order to facilitate this, the bank will release a whitepaper detailing the concept of a national digital currency, allowing potential partners to offer their proposals for the pilot.
The decision to move forward with the digital lari project was made in order to ensure financial and price stability, as well as to allow better access to digital technologies. Deputy Governor Papuna Lezhava stated that the NBG has already approved several alternative approaches to testing the digital incarnation of the Georgian lari. He added that the technical characteristics of the digital lari will be evaluated during the test phase.
The NBG is currently in the process of selecting a winning partner for the project. Once the partner is selected, the two parties will discuss the timeline for implementation. Lezhava noted that the pilot version of the central bank digital currency will be relatively limited, and the NBG will assess its success before deciding whether to move forward with the project.
The digital lari project is an important step forward for the Georgian economy, as it will enable the country to embrace digital technologies and ensure financial and price stability. The NBG is expected to release the whitepaper in the coming months, and the pilot is expected to launch in the first half of 2023.
• Avalanche (AVAX) rose by as much as 22% in today’s session, as cryptocurrencies reacted to the latest U.S. inflation report.
• Polkadot (DOT) was another big gainer in today’s session, with prices moving closer towards a four-week high.
• Price strength is now tracking at 63.10, with DOT declining from its earlier peak, and the asset is trading at $5.09.
The cryptocurrency market was abuzz on Thursday, as two of the biggest tokens, Avalanche (AVAX) and Polkadot (DOT), made major gains. AVAX rose by as much as 22% in today’s session, as cryptocurrencies reacted to the latest U.S. inflation report. The token moved to a peak of $16.11 earlier in the day, which comes less than 24 hours after falling to a bottom of $12.41. This spike in price pushed avalanche to its highest point since November 8, when the asset was at a peak of $18.15.
Polkadot (DOT) was another major mover in today’s session, with prices moving closer towards a four-week high. After hitting a low of $4.84, DOT/USD managed to reach an intraday high of $5.16 earlier on Thursday. This rise in price allowed the token to break out of a key resistance level of $5.15, hitting its strongest point since December 16 in the process.
However, it is important to note that the 14-day relative strength index (RSI) failed to break out from a resistance at the 80.00 level for AVAX, and has since slipped lower. Similarly, for DOT, the 14-day RSI has failed to move beyond its long-term ceiling of 68.00. Price strength is now tracking at 63.10, with DOT declining from its earlier peak, and the asset is trading at $5.09.
In order for both tokens to continue to move higher, there will first need to be a rally in their respective RSI levels. This will indicate that the recent price gains are sustainable and that further upside is likely. Overall, Thursday has been a strong day for both tokens, and investors will be closely watching to see if the gains can be maintained in the coming days.