Today in Crypto: Celsius Hires New Lawyers

As part of its ongoing investigation, India’s Directorate of Law Enforcement (ED) is looking into more detail into exchange violations committed by crypto firms, according to a July 6 report by the Economic Times.

Among those summoned were executives from CoinDCX, CoinSwitch and more. The ED works within the framework of the Foreign Exchange Management Act, which restricts payments made to entities outside India.

In other news, CoinDesk reported Friday, July 8, that Blockchain.com could potentially lose $270 million by lending to struggling venture capital firm Three Arrows Capital.

Blockchain.com CEO Peter Smith said Three Arrows was “fast becoming insolvent”, with the report noting that the latter company had seen a liquidation order in the British Virgin Islands. Smith said Blockchain.com will not face similar issues and customers “will not be affected.”

In addition, the International Regulatory Strategy Group, a think tank supported by the City of London Corporation, recently said the global rules will allow central bank digital currencies (CBDCs) to work well in cross-border uses.

However, Britain has said any digital version of the pound may not be available for some time, at least until the second half of the decade, according to a Reuters report on Friday. Many other countries have explored them, including the United States, and the Federal Reserve has said a digital dollar could help the value of the dollar.

Separately, Russian financial monitoring agency Rosfinmonitoring said it was using software to track crypto transactions, hoping to improve those capabilities, Reuters wrote on Friday.

This is happening as Moscow seeks to add new crypto regulations. The report notes that the Bank of Russia is skeptical of crypto and wants to ban all trading and mining, although the Russian government wants to regulate the industry instead.

Additionally, the price of bitcoin saw an uptick as investors speculated it could be a sign of the end of the liquidity crunch, CNBC reported on Friday.

Bitcoin rose 13.63% for the seven-day trading week ending Friday and could have its best week since last October, Coin Metrics said.

In other crypto news, Reuters reported on Thursday (July 7th) that Brazilian Federal Police carried out an operation against a criminal gang they believe was laundering money from illegal gold mining with tokens. cryptographic.

Police arrested five people and served 60 search and seizure warrants in the case.

Meanwhile, BlockFi investors are considering the possibility of some of their holdings being wiped out, Bloomberg wrote on Saturday (July 9).

BlockFi limped off and managed to get a capital injection from crypto exchange FTX, but the Private Shares Fund called BlockFi’s warrants worthless for its June report. FTX offered a $400 million revolving credit facility as a lifeline.

Additionally, Bloomberg also reported on Saturday that CoinFlex filed a lawsuit to recover $84 million in losses from a single customer.

The company could also later sign a joint venture with another crypto exchange to remedy things. The exchange said a counterparty, which it said was longtime investor Roger Ver, failed to repay $47 million on a margin call. The total owed then increased after things were calculated, according to the report.

Finally, Celsius Network, the crypto network that froze withdrawals amid falling crypto prices, is hiring new lawyers for restructuring advice, including a possible bankruptcy option, The Wall Street Journal reported Sunday. July 10.

The attorneys are from Kirkland & Ellis and have replaced the company’s former attorney.

Due to the account freeze, customers have not been able to access their accounts for weeks. Celsius brought in $11.8 billion in assets in May – and the company shuffled its board of directors last week.

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