1. Home
  2. BitGo

BitGo

Rain exchange suffered $14.1M in suspicious outflows 2 weeks ago — ZachXBT

Several wallets reportedly belonging to Rain sent suspicious token transfers to a new address.

The Rain cryptocurrency exchange was “likely exploited” on April 29 when $14.1 million worth of Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP was transferred to a new wallet under suspicious circumstances, according to a May 13 report from on-chain sleuth ZachXBT. The report comes two weeks after the reportedly suspicious transactions took place.

Rain is a centralized crypto exchange headquartered in Bahrain. It specializes in serving customers from Southwest Asia and the Middle East. According to regional news site The National, Rain has recorded over $1 billion in trading volume since its inception.

ZachXBT’s official Telegram channel reported that the transferred funds “were quickly transferred to instant exchanges and swapped for BTC and ETH” before being deposited to two destination addresses on the Bitcoin and Ethereum networks. The Ethereum address, which ends in 6c28, is currently holding approximately 1,881 ETH, worth $5.5 million at the current price. The Bitcoin address, which ends in prp2, is holding ‎137.9 BTC, worth $8.6 million at the current price.

Read more

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

Another Round of Spot Bitcoin ETF Rejections Coming, According to BitGo CEO Mike Belshe – Here’s Why

Another Round of Spot Bitcoin ETF Rejections Coming, According to BitGo CEO Mike Belshe – Here’s Why

The chief executive of crypto custodian BitGo says that the U.S. Securities and Exchange Commission (SEC) will reject another round of spot market Bitcoin (BTC) exchange-traded fund (ETFs) applications. In a new interview on Bloomberg Television, BitGo CEO Mike Belshe says that the duality of modern crypto firms like Coinbase – which doubles as both […]

The post Another Round of Spot Bitcoin ETF Rejections Coming, According to BitGo CEO Mike Belshe – Here’s Why appeared first on The Daily Hodl.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

US crypto custody firm BitGo wins BaFin license in Germany: Report

BitGo originally announced it was setting up two regulated custodial entities in Germany and Switzerland in February 2020.

Major cryptocurrency custody firm BitGo is reportedly expanding its regulatory compliance in Germany more than three years after launching a dedicated local subsidiary.

BitGo has obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), according to a Nov. 1 report by Finance Magnates. The firm has been storing crypto assets like Bitcoin (BTC) for its clients since 2019 under the supervision of BaFin as part of a transitional regime, the report notes.

The German license secures BitGo's presence in the European market and is an important milestone for BitGo, BitGo Europe managing director Dejan Maljevic said.

“BaFin is recognized as one of the world’s key trendsetters in crypto regulation,” Maljevic noted, adding that the license “enables the progress that digital currencies entail while creating a secure regulatory framework.”

BitGo and BaFin have not yet responded to Cointelegraph’s request for comment.

Headquartered in Palo Alto, California, BitGo originally set up two regulated custodial entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary, BitGo Deutschland GmbH, immediately started providing custody services in Germany and was expected to apply for regulatory approval in November 2020.

BitGo then secured a New York Trust license in March 2021, which allowed the firm to operate as an independent custodian in the state.

The news comes shortly after BitGo raised $100 million in a Series C financing round in August 2023, bringing the company’s valuation to $1.75 billion. Backed by major investment firms like Goldman Sachs and Galaxy, BitGo reportedly initiated discussions regarding at least two prospective deals using the new funding.

Related: Germany's blockchain funding increases 3% amid market downturn: Report

BitGo’s regulatory milestone in Germany is another sign of growing cryptocurrency adoption in the country. According to an October 2023 report by Chainalysis, Germany is the second largest cryptocurrency economy in the Central, Northern and Western Europe region after the United Kingdom.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

BitGo CEO Warns Bitcoin (BTC) Could One Day Be Replaced by Something ‘Materially Better’ – Here’s Why

BitGo CEO Warns Bitcoin (BTC) Could One Day Be Replaced by Something ‘Materially Better’ – Here’s Why

Bitcoin (BTC) will eventually be replaced as the top digital asset, according to Mike Belshe, the chief executive of crypto custodian BitGo. Belshe says in a new interview on Kitco News that digital assets are “here to stay,” but he acknowledges that Bitcoin might not always be the flagship asset for the sector. “Bitcoin is […]

The post BitGo CEO Warns Bitcoin (BTC) Could One Day Be Replaced by Something ‘Materially Better’ – Here’s Why appeared first on The Daily Hodl.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

BitGo CEO Says Political Pressure, Not the Law, Preventing Spot Bitcoin ETF Approval

BitGo CEO Says Political Pressure, Not the Law, Preventing Spot Bitcoin ETF Approval

The CEO of crypto exchange BitGo, Mike Belshe, is offering his opinion on why a spot Bitcoin (BTC) exchange-traded fund (ETF) has yet to be approved by the U.S. Securities and Exchange Commission (SEC). In a new interview on Kitco News, Belshe says politics are playing a major role as to why there’s no spot-based […]

The post BitGo CEO Says Political Pressure, Not the Law, Preventing Spot Bitcoin ETF Approval appeared first on The Daily Hodl.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

South Korean Hana Bank enters crypto custody business with BitGo

KEB Hana Bank and BitGo plan to launch a joint cryptocurrency custody venture in the second half of 2024.

One of the largest South Korean banks, KEB Hana Bank, is moving to offer digital asset custody services through a new partnership with major cryptocurrency custody firm BitGo Trust Company.

KEB Hana Bank has signed a strategic business agreement with BitGo to jointly establish digital asset custody in South Korea, local news agency Yonhap reported. The commercial bank has a network of 111 branches with local banking assets of nearly $10 billion and equity of $490 million.

Hana Bank representatives reportedly announced the news on Sept. 5 at the cryptocurrency industry conference, Korea Blockchain Week.

As part of the collaboration, the parties will establish a joint venture featuring BitGo’s custody solutions and Hana Bank’s financial service and compliance expertise.

“By promoting digital asset custody business together with global partners, we expect to contribute to strengthening trust in the domestic digital asset market and consumer protection,” a Hana Bank executive reportedly said.

BitGo CEO Mike Belshe noted that the firm will focus on its capabilities of enhancing transparency and security in the South Korean digital asset industry.

Hana Bank and BitGo plan to launch their joint cryptocurrency custody venture in the second half of 2024, according to online reports.

Related: BitGo raises $100M after losing lawsuit against Galaxy

Hana Bank has recently expressed interest in tokenized deposit technology as an alternative to private stablecoins and central bank digital currencies.

In July 2023, the bank issued a report alongside local private banks like Woori Bank and Maeli Business News Korea, describing the so-called “certificate of deposit” tokens that could potentially replace customary notes and deposits without disrupting the traditional banking system.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

Crypto Biz: Binance Connect goes dark, Prime Trust is bust and PayPal unveils Crypto Hub

This week's Crypto Biz explores Binance Connect shutdown, BitGo's funding round, PayPal Crypto Hub, and other news.

It’s been another week of mixed developments in the crypto industry, with established players winding down operations while newcomers introduce new crypto features and services. 

Binance’s buy-and-sell crypto arm was shut down on Aug.16, with the crypto exchange remaining under widespread regulatory scrutiny, affecting key partnerships for its operations worldwide. Crypto custodian Prime Trust filed for bankruptcy protection following months of uncertainty regarding the state of its finances.

Meanwhile, in better news, BitGo raised millions of dollars in a fundraising round backed by a new group of investors. Some fresh capital also flocked to ZetaChain, with the chain-agnostic protocol securing $27 million in an equity round backed by over ten investors.

Lastly, PayPal made another bold move in the space, announcing a hub for selected crypto users despite the still uncertain environment within the United States. On Aug. 16, the company announced a partnership with crypto hardware wallet manufacturer Ledger, allowing U.S. residents to buy Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) with fewer steps.

Read more about these stories and get a glimpse into the constantly evolving crypto industry on this week’s Crypto Biz.

Binance Connect winds down operations

Binance Connect, the regulated buy-and-sell crypto arm of Binance exchange, was shut down on Aug. 16 after losing its card payments services provider. The platform launched in March 2022 as Bifinity to act as a fiat-to-crypto payments provider connecting crypto firms with the traditional finance system. At its launch, the platform supported 50 cryptocurrencies and fiat payment methods, including Visa and Mastercard. In the past months, Binance and its subsidiaries worldwide have fought to keep crypto on-ramps and off-ramps open amid growing regulatory scrutiny. The exchange is currently engaged in litigation with both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission on allegations of operating an unlicensed exchange in the United States.

Crypto custodian Prime Trust files for Chapter 11 bankruptcy

Crypto custodian Prime Trust has filed for Chapter 11 bankruptcy protection in Delaware after facing a shortfall in customer funds. According to its filing, the company has between 25,000 to 50,000 creditors and estimated liabilities between $100 million to $500 million compared to $50 million to $100 million worth of assets. Prime Core Technologies, Prime Trust, Prime IRA and Prime Digital were listed as the entities filing for Chapter 11 relief. Prime Trust’s bankruptcy follows Nevada’s business regulator issuing the firm a cease and desist order in June, saying its financial condition was “critically deficient” and could not honor customer withdrawals.

BitGo raises $100 million after losing lawsuit against Galaxy

Cryptocurrency custody platform BitGo has raised fresh capital after facing a series of terminated deals involving firms such as Galaxy Digital. The crypto firm secured $100 million in a Series C financing round bringing its valuation to $1.75 billion. BitGo’s Series C funding reportedly featured entirely new investors based in the United States and Asia, with some backers coming from outside the cryptocurrency industry. According to BitGo, the newly raised funds will be deployed to make strategic acquisitions and expand its custody services, wallet and infrastructure solutions globally.

PayPal to roll out Cryptocurrencies Hub for select users

Payments giant PayPal updated its terms and conditions to introduce Cryptocurrencies Hub — a feature that allows users to hold and interact with Bitcoin and other cryptocurrencies in their PayPal account. According to the company, the Cryptocurrencies Hub service will allow for the sale and purchase of crypto. In addition, it will facilitate the payment for purchases via PayPal using the money stored after the sale of cryptocurrencies. The new hub was announced just a few days after the fintech giant unveiled its dollar-pegged stablecoin PayPal USD (PYUSD). According to PayPal, the Cryptocurrencies Hub will be crucial to convert between PYUSD and other crypto assets. The new feature will be available for selected users. 

PayPal Cryptocurrencies Hub as explained in terms and conditions. Source: PayPal

Before you go: Spot Bitcoin ETF approved, but not in the US

In the latest episode of Cointelegraph’s The Market Report, analyst Marcel Pechman discusses the first spot Bitcoin exchange-traded fund (ETF) approved in the European Union, which went live on the Euronext Amsterdam exchange on Aug. 15, while the lack of regulatory clarity in the U.S. cryptocurrency market underscores the SEC’s reluctance to endorse a spot crypto ETF.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

US court dismisses BitGo’s claims in $100M lawsuit against Galaxy Digital

Vice Chancellor J. Travis Laster of the Delaware Court of Chancery said Galaxy had a “clean termination right” to the acquisition of BitGo, which it announced in 2022.

The Delaware Court of Chancery in the United States has granted a motion from crypto investment firm Galaxy Digital largely dismissing digital asset custodian BitGo’s case following a dropped acquisition of the firm in 2022.

According to court documents filed on June 9, Vice Chancellor J. Travis Laster dismissed BitGo’s complaint against Galaxy Digital with prejudice. The decision followed Galaxy dropping its decision to acquire BitGo in August 2022 as part of a $1.2-billion deal after extensive efforts, citing a breach of contract. BitGo subsequently filed a lawsuit against Galaxy seeking $100 million in damages.

In his ruling, Laster said Galaxy had a “clean termination right” to the BitGo acquisition based in part on BitGo’s failure to deliver certain financial statements in its efforts to go public in the United States. A Galaxy spokesperson told Cointelegraph the company was “pleased” with the court’s decision to dismiss BitGo’s claims.

“There are no facts alleged that could make it reasonably conceivable that the exercise of the termination right was inconsistent with the implied covenant of good faith and fair dealing,” said Laster.

Related: Galaxy Digital swings to profit after $1B net loss in 2022

Operated by Mike Novogratz, Galaxy Digital announced its intention to acquire BitGo in May 2021 as part of its public offering in the United States. However, in 2022 the BitGo deal fell apart, and the company disclosed $77 million in exposure to failed crypto exchange FTX, which declared bankruptcy in November.

It’s unclear what legal avenues BitGo may have following the Delaware court decision. Cointelegraph reached out to BitGo’s legal counsel but did not receive a response at the time of publication.

Magazine: Get your money back: The weird world of crypto litigation

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

Crypto custodian BitGo signals intent to acquire Prime Trust

Should the deal go through, Prime Trust’s infrastructure will “map over 1:1” with BitGo’s services, and add another trust company and crypto IRA fund.

Wallet infrastructure provider and digital asset custodian BitGo have signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust, according to an announcement on June 8. 

The terms of the agreement were not disclosed. If the deal goes through, BitGo will acquire Prime Trust’s payment rails and cryptocurrency IRA fund and increase its wealth management offerings.

Prime Trust’s Nevada Trust Company will also join BitGo’s network of regulated trust companies in South Dakota, New York, Germany, and Switzerland. Prime Trust’s API infrastructure and exchange network will “map over 1:1” with BitGo services. According to the BitGo statement:

“This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.”

The crypto custody market is evolving rapidly, with Ripple acquiring Swiss digital asset custody provider Metaco in May for $250 million. In addition, technological advances are impacting the market.

The acquisition comes as the United States Securities and Exchange Commission has proposed rule changes that would make it harder for crypto companies to act as custodians of their customers’ funds.

Related: Prometheum subsidiary receives FINRA approval for digital asset qualified custody

Prime Trust reportedly laid off a third of its staff in January. Later, it stepped in to hold Binance.US customer funds through a network of partner banks after the banking crisis in March. It was the center of a scandal in the U.S. state of Oregon last year when it was identified as the source of a $500,000 contribution to the state Democratic Party that later turned out to have come from FTX executive Nishad Singh.

Bitgo itself was almost acquired by Galaxy Digital for $1.2 billion last year, and filed suit against Galaxy after the deal was cancelled.

Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance

Securities token platform launches MPC wallet for institutions

The Web3 wallet allows institutions to control which employees are allowed to use the tokens held within it.

Securities token platform INX has launched a wallet with compliance features for institutions, according to a May 3 announcement. The new wallet was created in partnership with wallet infrastructure provider BitGo and uses multi-party computation (MPC) technology.

INX securities tokens exist on the Ethereum network and follow the ERC-1404 token standard. The standard was created in 2018 to allow for compliance-friendly Ethereum tokens. These tokens can only be transferred between users that have passed identity verification with a participating institution.

The new wallet allows institutions to comply with cybersecurity and custody standards in the financial industry when holding INX securities tokens. No single person is given access to the private key that controls a given account. Instead, the key is split into three or more “shards” that have to be combined to sign transactions, which is part of the MPC technology.

According to the announcement, the wallet also contains features to make employee access privileges easier to manage. Companies can task different employees with different roles, such as “viewers, spenders, approvers and administrators.” They can also segregate clients’ assets by splitting up funds into multiple wallets and giving “approver” privileges to each individual client. This allows institutions to give their clients more control over their individual accounts, the announcement said.

Lisa Jowett, head of platform sales at BitGo, said she thinks these new features will help make institutional investors more comfortable using Web3 technology:

“Our wallets can connect to and interact seamlessly with [the INX website] without compromising on security or reliability. This will unlock new possibilities for investors and serve as a gateway for institutional adoption of Web3.”

INX reached a major milestone on April 3 when it launched its first equity token from a public company, Greenbriar Capital. INX advisor Douglas Borthwick has argued that eventually “all assets will migrate to the blockchain.”

The company is registered with the Securities and Exchange Commission as a broker-dealer within the United States. Some industry experts have argued that the U.S. doesn’t have clear enough crypto regulations to allow most crypto exchanges to gain this designation.

Billionaire Mike Novogratz Issues Warning, Says Bitcoin Is Unlikely To Hit a New High Without Macro Assistance