Crypto Firm Wyre Reportedly Shuts Down After Canceled Bolt Acquisition, CEO Claims Firm Is Just ‘Scaling Back’ Operations

January 5, 2023 Bitcoin.com

SEC files objection to Binance.US’s plans to acquire Voyager Digital

January 5, 2023 Coin Telegraph

Acquisition

The SEC wants to see more information included in the $1.022 billion deal between Binance’s U.S. arm and Voyager Digital before it agrees to the acquisition.

The United States Securities and Exchange Commission (SEC) has filed a “limited objection” to crypto exchange Binance.US’s proposed $1 billion takeover of bankrupt crypto lender Voyager Digital, citing a lack of “necessary information.”

The limited objection was filed on Jan. 4, with the SEC pointing to a lack of detail regarding Binance.US’s ability to fund the acquisition, what Binance.US’s operations would look like following the deal, and how customer assets will be secured during and after the transaction.

A limited objection is similar to a normal objection but only applies to a specific part of the proceedings.

Additionally, the regulator also wants Voyager to provide more detail on what would happen should the transaction not be consummated by Apr. 18.

In its filing, the SEC said it already communicated its concerns with Voyager and the lender intends to file a revised disclosure statement prior to a hearing on the matter.

Some commentators interpreted the objection as the SEC suggesting Binance.US would not be able to afford the acquisition without “some untoward dealing” such as receiving funds from Binance’s global entity.

SEC basically objecting on the grounds that Binance US couldn’t have this size of assets without some untoward dealing (likely with parentco)

Which would mean a commingling of the US entity. So if Binance fights it they risk US exposure… https://t.co/9wW6eRTol7
— Adam Cochran (adamscochran.eth) (@adamscochran) January 4, 2023

While Binance CEO Changpeng Zhao (CZ) has publicly stated that Binance.US was a “fully independent entity,” an Oct. 17 Reuters report alleged that the U.S. entity acts more like a “de facto subsidiary” which was created to “insulate Binance from U.S. regulators.”

In response to the allegations, CZ suggested in an Oct. 17 blog that Binance was committed to complying with regulators, that the author of the article was reporting in a biased manner and had used a presentation provided by an external consultant which was never implemented as evidence for these claims.

Voyager announced on Dec. 19 that it had agreed to Binance.US’s bid to acquire its assets, in a deal worth $1.022 billion in total.

The lender noted in a press release that the bid was the “highest and best bid for its assets,” which would maximize the value returned to customers and creditors “on an expedited timeframe.”

Voyager previously announced on Sep. 27 that FTX.US had won the auction for its assets with an offer of $1.4 billion which would have seen customers recover 72% of their frozen crypto, in a deal that has since fallen through.

CrossTower to acquire institutional prime brokerage BEQUANT

November 30, 2022 Coin Telegraph

Acquisition

It comes after months of window shopping by CrossTower as crypto companies are still looking to expand despite the crypto market downturn.

Cryptocurrency exchange CrossTower Inc has agreed to buy digital asset trading platform BEQUANT, which comes after months of window shopping by CrossTower for crypto companies, including a recently revised offer for Voyager Digital's assets.

The Nov. 28 acquisition will provide CrossTower with over 600 new professional exchange clients in addition to its existing clientele. The incoming clients are based across the United States, Europe, Asia, and Latin America and are collectively making over $400 billion annually.

The purchase comes as CrossTower CEO Kapil Rathi stated on Nov. 24 that CrossTower has long been on the lookout to buy digital asset companies with a “good set of customers” and a “good balance sheet,” which included a second look at the now-bankrupt cryptocurrency lending platform Voyager, who is back on the market after its initial agreement with FTX recently fell through.

Rathi said the access to over 600 exchange clients through the BEQUANT acquisition would also better position the firm to assist in re-establishing industry trust, which has been significantly dampened by recent events with FTX.

CrossTower’s deal was backed by London-based financial services firm Lydian Group, with CEO Gerard Lopez stating that he hoped CrossTower’s acquisition would lead the way in bringing more professionalism and transparency to the industry.

CrossTower set to introduce ‘industry-first’ ESG Crypto Fund

The trading platform also announced that they will soon offer an Environment, Social, and Governance (ESG)-focused Crypto Fund which will invest in “promising” companies that demonstrate a sufficient level of social and governance accountability in addition to efficiently managing energy costs.

While CrossTower didn’t disclose any potential companies that may become part of its new fund but the trading platform said it would look for companies that aren’t fueled by “greed” and instead prioritize “the democratization of finance.”

CrossTower added it would look for digital asset companies with a “proper board structure [...] checks and balances, and traditional business expertise” adding the crypto companies “in trouble” today are due to “human failure.”

The announcement of CrossTower’s industry-first ESG Crypto Fund comes as a number of industry leaders told recently Cointelegraph that The Ethereum Merge, which took place on Sept. 15, would become a “big factor” behind institutional investment decision-making, particularly for firms like Fidelity Investments, BlackRock and Goldman Sachs who have ESG mandates.

Interestingly, a June study by investment management firm Morningstar found that 80% of investors who hold ESG-themed investments also own cryptocurrencies as reported by CNBC.

By contrast, the study also found that only 22% of non-ESG investors own cryptocurrencies.

CrossTower eyeing further crypto acquisitions outside of Voyager bid

November 24, 2022 Coin Telegraph

Acquisition

CrossTower’s president said they would place extra emphasis on highly transparent and compliance-focused companies in light of the FTX collapse.

Crypto exchange CrossTower Inc., which is currently bidding for the assets of Voyager Digital, is reportedly window shopping for other crypto company acquisitions.

In a Nov. 24 Bloomberg report, CrossTower CEO Kapil Rathi revealed that the company is looking to pick up firms with a “good set of customers” and a “good balance sheet” despite the current bear market, stating:

“We’re in a great place to either acquire entities who have a good set of customers with them and a good balance sheet [...] so we are openly looking at different types of companies from an organic growth perspective.”

In September, CrossTower was one of the companies reported to be competing to acquire the assets of bankrupt crypto lender Voyager Digital, along with FTX and Binance.

FTX Trading eventually became the winner of the Voyager bid on Sept. 27 with the sale valued at $1.4 billion.

However, with the exchange filing for bankruptcy filing on Nov. 11, Voyager reopened the bidding process and a new revised offer came from CrossTower on the same day.

“We are working on a revised offer that we feel will benefit the Voyager customers and the wider Crypto community. CrossTower has always been, and will continue to be, very community-focussed,” a spokesperson told Cointelegraph at the time, without specifying an amount.

While CrossTower has still yet to disclose any details on its latest bid for Voyager, CrossTower president Kristin Boggiano stated that Voyager’s small $3 million FTX investment wouldn’t play a factor in a potential sale for the lending platform.

CrossTower also stated that it has “minimal exposure” to FTX-related investments.

Other companies back in line to buy out Voyager’s assets include Binance and blockchain-focused venture capital firm Wave Financial, who had also expressed interest in the initial auction for Voyager's assets in September.

In light of recent events with FTX, Boggiano stated that the firm has now placed an extra emphasis on companies that are highly transparent and compliance-focused.

“There’s an opportunity in this market to provide a compliance focused platform and to bring the transparency and trust that people have been hoping for.”

However, Rathi said the trading platform’s risk appetite to buy out companies has leveled off with the firm looking to adopt a slightly more cautious approach over the short to mid-term.

CrossTower is a United States crypto asset exchange that was founded in 2019. It's a relatively small exchange with only $103,816 in trading volume over the last 24 hours with 13 spot markets, according to Coinmarketcap.

Ripple to consider deals for FTX assets: Brad Garlinghouse

November 20, 2022 Coin Telegraph

Acquisition

Brad Garlinghouse, CEO of Ripple, said the company would be interested in companies owned by FTX that serve business customers.

Ripple CEO Brad Garlinghouse is reportedly interested in buying certain parts of collapsed crypto exchange FTX.

On the sidelines of Ripple’s Swell conference in London — was held on Nov. 16 and 17 — Garlinghouse told The Sunday Times that former FTX CEO Sam Bankman-Fried called him two days before the company filed for bankruptcy as he sought to round up investors to rescue the business.

Our 6th annual #RippleSwell is underway! I took the stage this morning with @cnbcKaren to discuss all things Ripple, crypto utility, macroeconomic factors affecting crypto, and much more. A thread… pic.twitter.com/EDHW3nyka8
— Brad Garlinghouse (@bgarlinghouse) November 16, 2022

The Ripple CEO said that during the call, the two discussed if there were FTX-owned businesses that Ripple “would want to own.”

“Part of my conversation was if he needs liquidity, maybe there’s businesses that he has bought or he has that we would want to own [...] Would we have bought some of those from him? I definitely think that was on the table,” he said.

However, Garlinghouse admits that now that FTX has filed for Chapter 11 bankruptcy in the United States, a potential transaction for an FTX business will be “very different than it would have been one-to-one.”

“I’m not saying we won’t look at those things – I’m sure we will. But it’s a harder path to transact,” he added.

Approximately 130 companies affiliated with FTX, including FTX.US, were included in the bankruptcy filing in Delaware.

Some subsidiaries not included in the proceedings include crypto clearinghouse LedgerX, FTX Digital Markets, FTX Australia Pty, and payments processor FTX Express Pay.

Garlinghouse said he would be interested in buying the parts that served business customers.

Cointelegraph has reached out to Ripple for additional comment but has not received a response by the time of publication.

It appears that Ripple’s executives, like many in the industry, are following the latest developments of the FTX saga.

On Nov. 10, Ripple chief technology officer David Schwartz directed a message on Twitter toward employees of FTX, suggesting that there would be room at Ripple for them, so long as they aren’t involved in compliance, finance or business ethics.”

Hey @FTX_Official employees not involved in compliance, finance, or business ethics:@Ripple is always hiring.
— David "JoelKatz" Schwartz (@JoelKatz) November 10, 2022

FTX has recently appointed restructuring administration firm Kroll as its agent to track all claims against FTX and ensure interested parties are notified of developments throughout its Chapter 11 bankruptcy case.

‘Twitter will do lots of dumb things’ in the coming months: Elon Musk

November 10, 2022 Coin Telegraph

Acquisition

Twitter's new owner says they'll be throwing a heap of new ideas at the platform over the coming months.

Twitter’s new owner Elon Musk has asked his followers to prepare for “lots of dumb things in [the] coming months” on his newly acquired social media platform.

The Tesla CEO, now sole director of Twitter has already made a swathe of changes to the platform since taking over the company on Oct. 27, and has now pledged to continue the work over the coming months, stating:

“Please note that Twitter will do lots of dumb things in coming months. We will keep what works & change what doesn’t,” he wrote in a Twitter post on Nov. 9.

Please note that Twitter will do lots of dumb things in coming months.

We will keep what works & change what doesn’t.
— Elon Musk (@elonmusk) November 9, 2022

Since taking over Twitter, Musk has already implemented several changes to the platform, including an $8 monthly subscription model launched on Nov. 9 that allows users to gain a blue verified checkmark, which grants them higher priority in tweets and replies than unverified users and features fewer ads.

Other changes to the platform include handing out permanent suspensions for handles that engage in impersonation without specifying “parody”, temporary loss of verified checkmark when a name change occurs, and its community-based misinformation project being rebranded from Birdwatch to Community Notes, while some users have reported a new shopping tab on the platform.

In a Twitter Spaces Q&A session held on Nov. 9, Musk was asked what he thought about Twitter ads, to which Musk replied that “We are terrible at relevance,” before adding:

“One of the ways we’re going to address that is by integrating ads into recommended tweets”

Musk also suggested in a Nov. 9 tweet that the “official” label would be killed after the launch of Twitter blue, before a Twitter employee clarified that the official label would only be given to government and commercial entities at this stage, adding in a later tweet:

“There are no sacred cows in product at Twitter anymore. Elon is willing to try lots of things -- many will fail, some will succeed. The goal is to find the right mix of successful changes to ensure the long-term health and growth of the business.”

Musk has also proposed changes such as adding long text to tweets, improving the search function, the formation of a Content Moderation Council, bringing back short-form videos like Vines, adding paid direct messages allowing users to send private messages to high-profile users, and ultimately hoping to transform the app into an “everything app.”

It is also understood that the company has filed registration paperwork with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which would allow it to process payments.

Yep, Twitter Payments LLC registered with FinCEN a few days ago as a money transmitter. You can verify its registration on FinCEN's search page: https://t.co/cKJ9rCpd2F pic.twitter.com/7zo8tWDdmq
— John Paul Koning (@jp_koning) November 9, 2022

Musk outlined in the Twitter Spaces Q&A a vision of Twitter allowing users' bank accounts to be connected to their profile, before looking into facilitating other types of transfers and incorporating debit cards.

Upon finalizing the acquisition deal of Twitter, Musk has also made changes to the company including the firing of upper management, booting out the board of directors, and taking the company private, and reportedly laying off as much as 50% of the company’s workforce.

Breaking: FTX’s Binance rescue deal falls apart in less than 48 hours

November 9, 2022 Coin Telegraph

Acquisition

Binance cited allegations of the mishandling of consumer funds and an investigation from regulators as reasons for exiting the agreement.

On Nov. 9, less than 48 hours after Changpeng “CZ” Zhao, CEO of cryptocurrency exchange Binance, announced his intentions to bail out troubled competitor FTX, the firm stated that it would not be pursuing the deal. Binance had signed a nonbinding letter of intent on Nov. 8 that allowed the firm to either fully acquire the FTX exchange, proceed with a partial acquisition of assets, or walk away from the agreement.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”

Binance explained that initially, it wanted to support the ailing crypto exchange by providing its customers with liquidity; however, issues were “beyond our control or ability to help.” The firm also said, “Every time a major player in an industry fails, retail consumers will suffer,” while adding that the ecosystem will eventually become more resilient with the weeding out of bad players.

This is a developing story, and further information will be added as it becomes available.

Binance Proof-of-Reserve pledge gains support following FTX crisis

November 9, 2022 Coin Telegraph

Acquisition

The call for a more detailed disclosure of liquidity through the use of "Proof-of-Reserves" has been backed by many high-profile industry figures.

Following the liquidity crisis and acquisition of cryptocurrency exchange FTX, Binance CEO Changpeng “CZ” Zhao said his exchange will soon start a Proof-of-Reserves audit system to allow verification of its digital asset holdings.

In a Nov. 8 Twitter post, Zhao pledged to implement a Proof-of-Reserve mechanism at Binance to provide “full transparency” through the use of Merkle Trees — a data structure used to encode blockchain data more efficiently and securely.

All crypto exchanges should do merkle-tree proof-of-reserves.

Banks run on fractional reserves.
Crypto exchanges should not.@Binance will start to do proof-of-reserves soon. Full transparency.
— CZ Binance (@cz_binance) November 8, 2022

A Proof-of-Reserve audit is ordinarily conducted by an independent third party to ensure the custodian’s assets are owned as claimed.

The Binance CEO’s intention to implement Proof-of-Reserves comes after Binance agreed to buy rival cryptocurrency exchange FTX on Nov. 8, who’s been rumored to be on the brink of financial collapse despite CEO Sam Bankman-Fried initially dismissing the claims.

Cointelegraph contacted Binance to confirm if the exchange had begun implementing a Proof-of-Reserve system but did not immediately receive a response.

Chainlink (LINK) CEO Sergey Nazarov expressed his views in a Nov. 8 tweet that a cryptographic-based Proof-of-Reserves mechanism could paint investors with a more clear picture of the solvency situation of a trading venue or financial firm, and “is becoming the new industry standard.”

It is clear that cryptographically proving the solvency of trading venues and financial institutions is becoming the new industry standard. Proof of Reserves is a great example of a cryptographically guaranteed financial world that starts in crypto going on to mainstream finance. https://t.co/eZw1pj5706
— Sergey Nazarov (@SergeyNazarov) November 8, 2022

Meanwhile, crypto exchange Kraken has already implemented its “advanced cryptographic accounting procedure” to allow users to verify their token balances since Feb. 2022.

Crypto exchange OKX also announced its plans to roll out a Merkle tree-based Proof-of-Reserves audit system in a Nov. 8 Twitter post —- something they consider to be an “important step” in establishing a “baseline trust” in the industry.

The idea of more Proof-of-Reserve audits received near-full backing from the Twitter community, with crypto industry figures weighing in on the move by Binance.

Host of The Daily Gwei podcast, Anthony Sassano, and founder of open-source crypto exchange ShapeShift, Erik Voorhees, both suggested Proof-of-Reserves are already integrated into decentralized finance (DeFi) and automated by smart contracts.

Transparent proof-of-reserves:

✅ Wild West Defi
❌ Regulated and Compliant Centralized Exchanges https://t.co/T8QxZ4VOTE
— Erik Voorhees (@ErikVoorhees) November 7, 2022

The founder of crypto market intelligence platform Messari, Ryan Selkis, took things one step further, arguing that regulators should direct their attention to focus on the more centralized players in the industry.

The fact we are debating DeFi protocol regulation before responsible disclosures like proof-of-reserves and liquidity from the mega-funds like a16z and Alameda shows just how far off the ball we are on policy right now.
— Ryan Selkis (@twobitidiot) November 8, 2022

But not all agreed. Antonio Juliano, founder of crypto derivatives trading platform dYdX argued that a Proof-of-Reserves wouldn’t disclose all necessary information needed to verify an exchange's holdings.

The issue is that CEXs *can’t* do proof of reserves

So what if you show a wallet with $20B? How do you know the sum of user balances isn’t $30B?

How do you know if the entity has outstanding loans? How do you know what contracts they’ve entered into? https://t.co/lbL6YGD5Ze
— Antonio | dYdX (@AntonioMJuliano) November 8, 2022

CZ Says Binance Intends to ‘Fully Acquire FTX,’ Sam Bankman-Fried Confirms Transaction

November 8, 2022 Bitcoin.com

Friday after-work drinks with Twitter’s new owner Elon Musk, who’s in?

October 26, 2022 Coin Telegraph

Acquisition

After Elon Musk signaled his intention to continue the deal to buy the social media platform earlier in October, reports are emerging that the acquisition is almost over.

Crypto-friendly billionaire Elon Musk is set to finalize the acquisition of social media platform Twitter by Friday, Oct. 28 which brings to a close the protracted Musk-Twitter saga.

On Oct. 24 Musk vowed to the banks assisting with the roughly $13 billion of financing for the deal that it would be closed by the end of the week and the banks have completed the final credit agreement, one of the last steps before sending the money to Musk according to Bloomberg sources.

Musk has also reportedly notified his co-investors who are helping him fund the acquisition by sending over paperwork for the financing commitment according to Reuters sources which include venture capital firm Sequoia Capital, crypto exchange Binance, and Qatar’s Investment Authority.

During a conference in Saudi Arabia on Oct. 25, Binance CEO Changpeng Zhao reaffirmed his commitment to backing Musk’s takeover, as per Bloomberg.

The latest developments in the deal point to Musk seemingly adhering to a court-issued deadline set by a Delaware judge in early October where Musk filed his intention to proceed with closing the deal at the original $44 billion price after previously wanting to back out in July.

Musk intends to close the transaction at a price of $54.20 per share. Twitter stock prices jumped on the news, closing at $52.78 a share and up 2.45% for the day as per Yahoo Finance.

In the past, Musk has highlighted many areas of the platform he wishes to change with his stated “top priority” being to cut down on crypto scam tweets and at one time planned to charge users 0.1 Dogecoin (DOGE) — much less than half a cent — to post on Twitter but later admitted it wouldn’t be feasible.

Crypto wallets on Twitter?

The news comes a few days after rumors emerged that Twitter may be working on a cryptocurrency wallet according to Security researcher Jane Manchun Wong who made Forbes 30 under 30 for her high-profile tech leak scoops.

On Oct. 25 she tweeted the platform was working on a “wallet prototype” that supports “crypto deposit and withdrawal” but did not provide evidence or a source for her claim. Cointelegraph has reached out to Twitter for comment.

Meanwhile, news of Musk’s deal nearing its end comes as internal documents from Twitter seen by Reuters on Oct. 26 reveal the platform is struggling to retain its most active users, those who log in to the platform up to seven days a week and tweet a minimum of three times a week.

While these heavy users are less than 10% of the total monthly overall users they account for a massive 90% of all tweets on the platform and around half of Twitter's global revenue.

The leaked research also found over the last two years the topics of interest among English-speaking heavy users have shifted with one of the highest-growing topics being cryptocurrency and interest in news, sports, and entertainment has seen a decline.

Acquisition

CrossTower set to introduce ‘industry-first’ ESG Crypto Fund

Crypto wallets on Twitter?

Share this video