Abra settles with SEC over unregistered securities charges

August 26, 2024 Coin Telegraph

Abra

The SEC announced securities charges against the lending platform over its Abra Earn service but also said the firm had settled with pending civil penalties and an injunction.

The United States Securities and Exchange Commission announced that cryptocurrency platform Abra had agreed to a settlement over allegations the firm did not register the offers and sales of its lending product.

In an Aug. 26 notice, the regulator said Plutus Lending, doing business as Abra, “without admitting or denying the SEC’s allegations,” had agreed to pay civil penalties to be determined by a court and an injunction prohibiting the firm from violating securities laws. The SEC filed charges against the lending platform for failing to register the offers and sales of Abra Earn and operating as an unregistered investment company.

“Abra allegedly sold its own securities while skirting applicable Investment Company Act provisions that provide a number of important protections to investors, including minimizing conflicts of interest,” said SEC Enforcement Associate Director Stacy Bogert. “This matter reflects yet again, that in conducting enforcement investigations, we are governed by economic realities, not cosmetic labels.”

$2.18 Billion Digital Assets in Kind Returned to Earn Users, Gemini Says

May 30, 2024 Bitcoin.com

Gemini creditors revolt over ‘brutal’ Bitcoin slashing reorg plan

December 14, 2023 Coin Telegraph

Bitcoin miners earned $44M in a day to record annual all-time high

November 13, 2023 Coin Telegraph

Bitcoin miners earned M in a day to record annual all-time high

Bitcoin mining

2023 saw an overall trend reversal as crypto entrepreneurs took charge of the situation and helped regain investor confidence.

The Bitcoin (BTC) mining community recorded its annual all-time high (ATH) on Nov. 12 after raking in over $44 million in block rewards and transaction fees.

The revenue from Bitcoin mining primarily comes from rewards for confirming Bitcoin transactions and creating new blocks using high-tech computer equipment known as mining rigs. Miners currently receive 6.25 BTC for every successful block creation in addition to the transaction fees.

On Nov. 12, the daily Bitcoin mining rewards crossed $44 million for the first time in 2023, a number last seen in April 2022, according to data from blockchain.com.

*Bitcoin mining revenue annual chart. Source: blockchain.com*

In between the timeline of April 2022 and November 2023, several factors contributed to the dip in the revenue of Bitcoin miners globally. They include a prolonged bear market, negative investor sentiment around scams and ecosystem collapses and unfriendly regulations that prevent investors from transacting Bitcoin freely.

However, 2023 saw an overall trend reversal as crypto entrepreneurs took charge of the situation and helped regain investor confidence. As a result of rising market prices coupled with growing interest among the masses, the mining community witnessed a year-long increase in revenue.

Marathon’s Q3 Earnings Release is here:
- Revenue of $97.8M, due to 467% increase in #Bitcoin production and higher BTC prices.
- Adjusted EBITDA improves to $43.7M.
- 8% increase in hash rate; expanding with hydro-powered ventures in Paraguay.
- Long-term debt reduced by 56%,…
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) November 8, 2023

Bitcoin mining firm Marathon Digital Holdings reported a revenue surge of 670% year-on-year in the third quarter of 2023 amid a nearly five-fold increase in Bitcoin production.

Alongside Bitcoin mining companies and individual miners, numerous countries actively participate in securing the Bitcoin network via mining.

Recently, Cointelegraph reported that the landlocked Asian country of Bhutan has been actively mining Bitcoin with hydropower since BTC price was $5,000 in April 2019.

The kingdom has reportedly explored partnerships to expand its mining operations further. Notably, it is negotiating with Nasdaq-listed mining company Bitdeer to secure 100 megawatts of power for a Bitcoin mining data center in Bhutan. This partnership would increase Bitdeer’s mining capacity by about 12%.

Magazine: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers

Court confirms Celsius bankruptcy exit plan, $2B in crypto to go to creditors

November 9, 2023 Coin Telegraph

Bankruptcy

The decision ends the complex case with a creditor-approved plan that will see their partial reimbursement and make them shareholders in a new company.

The Celsius bankruptcy plan has been approved. The path is now clear for customers to see some of their funds returned and receive shares in the reorganized company, which will be called NewCo.

Judge Martin Glenn of the Southern District of New York Bankruptcy Court issued a confirmation on Nov. 9 of the bankruptcy plan approved by Celsius creditors overwhelmingly on Sept. 27. Under the plan, around $2 billion in Bitcoin (BTC) and Ether (ETH) will be redistributed to Celsius creditors along with equity in NewCo. The company has said it hoped to begin reimbursement of creditors by the end of the year.

*Judge Martin Glenn's bankruptcy plan confirmation. Source: Stretto*

Many of the Celsius creditors were participants in its Earn program, allowing them to earn weekly rewards by holding CEL token that were locked for a year. Judge Glenn wrote in his decision:

“Nothing in this Confirmation Order or the Plan constitutes a finding of the Court under any securities laws or otherwise as to whether CEL Token or the Earn Program are securities.”

The United States Securities and Exchange Commission has claimed similar programs are securities.

NewCo will expand existing mining operations of former crypto lender Celsius. It will also monetize illiquid Celsius assets and conduct other developmental activities, subject to regulatory approval.

NewCo will be managed by the Fahrenheit consortium, made up of several crypto-native persons and organizations. One of the consortium members is Proof Group, which is reportedly also bidding for FTX.

pic.twitter.com/PwyMicXbr5
— Celsius NewCo Community (@CelsiusNewCo) November 6, 2023

Celsius declared bankruptcy in July 2022. Its Celsius CEO Alex Mashinsky was arrested in July 2023 on charges of securities fraud, commodities fraud and wire fraud. He is expected to be tried in September 2024 and remains free on $40 million bail.

Former Celsius chief revenue officer Roni Cohen-Pavon pleaded guilty to fraud and price manipulationcharges and will be sentenced on Dec. 11.

Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame

Paxful to return lost Celsius funds to Earn users

March 29, 2023 Coin Telegraph

Bankruptcy

Peer-to-peer marketplace Paxful will refund its Earn program users impacted by Celsius Network's bankruptcy.

Crypto marketplace Paxful will refund its Earn program users affected by the Celsius Network collapse in 2022, according to a Twitter thread posted on March 29 by company CEO Ray Youssef.

"I’ve personally taken action and will be refunding all affected Paxful users," noted Youssef, explaining that funds will be available for affected users in the platform's wallet in the coming days.

Celsius filed for Chapter 11 bankruptcy in the United States on July 14, leaving thousands of depositors with their assets locked up on the crypto lending platform. At that time, neither the company nor its CEO, Alex Mashinsky, commented publicly about whether depositors could expect any percentage of their funds. According to the bankruptcy filing, user deposits comprised most of Celsius' liabilities at $4.72 billion.

We have done the right thing and refunded @paxful users who lost funds with Celsius Earn. I could not stand by and watch them suffer, so we’ve made them whole. Our users always come first to me, this is the way ! pic.twitter.com/aQox7qspOh
— Ray Youssef (@raypaxful) March 29, 2023

As of now, Paxful has not disclosed how much it is returning to customers. Cointelegraph reached out to Paxful, but did not receive an immediate response.

During a bankruptcy hearing on Jan. 4, Judge Martin Glenn ruled that Celsius owns the funds in the interest-bearing Earn program under its terms of use, not its depositors. Youssef commented on the decision:

"The [Celsius] collapse hurt countless users and damaged trust in our industry. Paxful, like many others, were paralyzed to act as we could not retrieve funds held by Celsius. Another hit came when the courts ruled that Celsius Earn Account belonged to Celsius’ bankruptcy estate, not to its users. This didn’t sit right with me then, and it still doesn’t sit right with me today."

Bankruptcy proceedings for Celsius are still ongoing. Recently, a settlement plan between the committee of unsecured creditors and a group of account holders was approved, allowing account holders to recover 72.5% of their crypto holdings. The defunct platform announced in February that NovaWulf Digital Management would act as a sponsor for its restructuring plan, claiming that over 85% of Celsius customers would be able to recover roughly 70% of their crypto assets.

Top 7 ways to earn free crypto

March 19, 2023 Coin Telegraph

airdrops

Learn how to earn free cryptocurrency with these seven methods, including faucets, bug bounties and more.

Due to the popularity of cryptocurrency, numerous individuals are searching for means to acquire free crypto. Here are seven methods one can use to earn cryptocurrency without having to invest your own money, including crypto faucets, airdrops, staking, bug bounties and more.

There are several common risks to be aware of when earning free crypto, including security risks, scams and fraud, limited earning potential, time-consuming activities, and potential legal or tax implications. It’s important to do your research and approach these methods with caution.

Faucets

Crypto faucets are websites or applications that provide users with small sums of cryptocurrency in exchange for doing things like completing CAPTCHA puzzles or watching advertisements. One example is Moon Litecoin, which offers free Litecoin (LTC) to users who complete tasks, such as streaming videos. The rewards from Moon Litecoin are deposited into users’ micro wallet on Coinpot.co.

Unfortunately, there are many scam crypto faucets that promise high rewards but never actually pay out. Some may require you to pay a fee or complete a certain number of tasks before you can withdraw your earnings, while others may simply disappear without warning. Therefore, it is important to approach crypto faucets with caution and do your research before using them.

Airdrops

Airdrops are free distributions of cryptocurrency tokens or coins. Businesses and projects give away a set number of tokens to people who register for their platform, carry out particular actions or satisfy certain requirements.

Staking

Staking involves holding a certain number of cryptocurrency tokens in a wallet or exchange to help secure the network and earn rewards. One can stake cryptocurrencies such as Cardano (ADA), Polkadot (DOT) and Ether (ETH) to earn staking rewards.

However, staking involves locking up one's funds for a set period of time, during which they may not be able to access or trade them. Therefore, make sure you understand the risks and potential rewards before you start staking.

Referral programs

For consumers who suggest friends and family join their platform, many cryptocurrency exchanges and wallets provide referral programs that pay rewards. Free cryptocurrency or a part of the user’s trading commissions might be given as rewards.

Completing surveys

Some websites and apps offer users the opportunity to earn cryptocurrency rewards by completing surveys or participating in market research. Websites like Swagbucks offer crypto rewards for completing tasks, such as watching videos, answering surveys and playing games. However, one must exercise caution while engaging in any activity on such websites.

Bug bounties

Cryptocurrency projects and exchanges often offer bug bounties to incentivize developers and security researchers to identify and report vulnerabilities in their software. These bounties can be in the form of cryptocurrency rewards and can range from a few hundred dollars to tens of thousands of dollars, depending on the severity of the bug.

Trading competitions

Depending on their trading volume or performance, customers can compete against one another to win prizes on several exchanges that provide trading competitions. Even though there can be fierce competition, there can also be significant benefits, with some exchanges providing thousands of dollars in cryptocurrency prizes.

Celsius Custody customers finally begin withdrawals 263 days after freeze

March 3, 2023 Coin Telegraph

borrow

Celsius users with funds held in its custody program have finally begun to withdraw funds, but users report delays due to a backlog of requests.

Some Celsius customers have reported being able to withdraw funds from the bankrupt crypto firm for the first time, some 263 days after the lender froze withdrawals in the lead-up to its bankruptcy filing.

According to numerous social media posts, as of Mar. 2, certain customers who held funds in Celsius’ Custody accounts have been overjoyed that they were finally able to withdraw their funds from the lender.

Glad to be one of the few to get their money back in almost one piece. Hoping everyone else will receive theirs in due time
— richieroyce.eth (@Richie_Royce) March 2, 2023

Customers report they received an email a few weeks ago listing those who were eligible to remove their funds, before receiving another on Mar. 2 noting withdrawals could be processed.

*An email sent from Celsius to eligible customers on Mar. 2. Source:* *Twitter*

While some users who whitelisted wallets ahead of their withdrawal attempt received their funds within minutes, others pointed to large delays.

*Celsius customers discussing withdrawal processing times on Reddit. Source:* *Reddit*

A backlog of withdrawal attempts seems to have built up, however, with some claiming that withdrawal requests are being converted into support tickets which could take some days to process, as a result of “too many requests and not enough staff.”

*A Reddit user claimed they were told their request could take days to process. Source:* *Reddit*

On Jan. 31, Celsius published details on who was eligible to withdraw, with customers who had only ever held funds in custody accounts able to currently withdraw 94% of their original funds.

The custody accounts were only available to United States residents. The withdrawals are restricted to these customers much to the disappointment of customers with funds in other accounts offered by Celsius.

Custody account holders may yet be able to get back the other 6%, pending future court hearings.

Customers who had transferred funds from the earn or borrow programs to a custody account are apparently able to withdraw 72.5% of their funds at this point in time, up to a maximum of $7,575.

The lender had first announced they would be freezing withdrawals on Jun. 13, 2022, citing “extreme market conditions,” before filing for bankruptcy on Jul. 13.

Nexo shutters US Earn product a month after settling with regulators

February 13, 2023 Coin Telegraph

The shutdown of Nexo’s earn product follows from a multi-million dollar settlement the firm paid last month with U.S. regulators.

Cryptocurrency lending firm Nexo Capital is set to terminate its yield-bearing Earn Interest Product for its customers in the United States roughly a month after it agreed to pay $45 million in penalties to U.S. regulators.

Nexo announced the termination in a Feb. 10 blog post saying the product would be stopped on Apr. 1. The program allowed users to earn daily compounding yields on certain cryptocurrencies by loaning them to Nexo.

An update for our U.S. clients.https://t.co/wRiDOPKEqg
— Nexo (@Nexo) February 11, 2023

Nexo pointed to its Jan. 19 settlements with the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) as the reason for the halt on offering Earn.

The SEC, NASAA and at least 17 state securities regulators investigated Nexo for failing to register the offer and sale of its Earn product.

Nexo paid a $22.5 million penalty and agreed with the SEC to cease offers of its Earn product to U.S. investors, an additional $22.5 million in fines were paid to settle charges by state regulators.

Nexo did not admit or deny the findings by the SEC but agreed to a cease-and-desist order prohibiting it from violating securities law provisions.

According to Nexo’s announcement, Earn users will continue to receive interest payments until Apr. 1. Those subscribed to a fixed-term product will have it unlocked on the termination date with Nexo urging users to “begin planning the withdrawal of your funds.”

Other Nexo services and products will not be affected according to the firm.

Embattled Crypto Broker Genesis Aiming To Come Back From Bankruptcy in Coming Months: Report

January 25, 2023 The Daily Hodl

earn