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

Bankrupt Crypto Lender Genesis Owes Over $3,800,000,000 to Firm’s Largest 50 Creditors

January 23, 2023 The Daily Hodl

Digital Currency Group halts dividends in an effort to preserve liquidity

January 18, 2023 Coin Telegraph

Coin Telegraph

Digital Currency Group, a venture capital firm that owns a stake in more than 200 crypto projects, announced the dividend halt while one of its subsidiaries is in financial strife.

Venture capital firm Digital Currency Group (DCG) has told shareholders it is halting its quarterly dividend payments until further notice as it attempts to preserve liquidity.

According to the letter sent to shareholders on Jan. 17, the firm is focused on “strengthening our balance sheet by reducing operating expenses and preserving liquidity.”

Its financial issues are derived from the woes of its subsidiary, crypto broker Genesis Global Trading, which reportedly owes creditors more than $3 billion and DCG is also considering selling some of the assets within its portfolio.

Customers are currently unable to withdraw funds from Genesis after it halted withdrawals on Nov. 16, which has prompted Cameron Winklevoss — on behalf of his exchange Gemini and its users with funds on Genesis — to call for the board of DCG to remove Barry Silbert as CEO of the firm in a Jan. 10 open letter.

Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023

According to Winklevoss, Genesis owes Gemini $900 million for funds that were lent to Genesis as part of Gemini’s Earn program, which offers customers the ability to earn an annual yield of up to 7.4%. He also claimed DCG owed $1.675 billion to Genesis although DCG boss Barry Silbert denied this

Soon after, on Jan. 12, the United States Securities and Exchange Commission (SEC) poured fuel on the fire charging both firms with offering unregistered securities through the Earn program.

Genesis’ problems first became apparent on Nov. 16, when it halted customer withdrawals in the wake of the FTX fallout, citing “unprecedented market turmoil” which resulted in “abnormal” levels of withdrawals.

On Nov. 10, less than a week earlier, Genesis revealed it had around $175 million stuck on FTX, which resulted in DCG sending Genesis an emergency equity infusion of $140 million in an attempt to resolve its liquidity issues.

DCG also owns Grayscale Investments and its series of digital asset trusts and has invested in over 200 companies within the crypto industry including recognizable names such as blockchain analysis firm Chainalysis, stablecoin issuer Circle and digital asset exchange Kraken.

Cointelegraph contacted DCG for comment but did not receive a response.

Frozen bank account triggers switch to Bitcoin salary for a whole year

December 22, 2022 Coin Telegraph

Coin Telegraph

How a frozen bank account led one Bitcoin advocate to experiment with living on the Bitcoin Standard.

As Bitcoin (BTC) adoption continues to sow seeds around the world, more and more people are choosing to accept the original cryptocurrency as payment for their goods and services. For individuals, that means accepting BTC as their salary.

A Florida-based Bitcoin advocate called SVN (not his real name) took his entire salary in BTC for the past year. Cointelegraph reached out to him to understand why he did it and if there are certain advantages to earning the world’s most recognizable cryptocurrency.

SVN explained that when the bank froze one of his accounts, he turned “to Bitcoin as a solution to keep my life going while the issue got resolved.”

While banks have the power to unbank customers at will, or must follow governmental instruction–such as during the Canadian trucker protest in which governmental orders prevented crowdfunding for the protestors–Bitcoin runs 24/7, 365 days a year without an intermediary.

But for SVN he also wanted to explore whether it was possible to live on Bitcoin and crypto and form his own conclusion about its potential as the best form of money. Could Bitcoin really be the future of money? SVN explained:

“Everyone kept saying that it's the best form of money in the world, but all I knew were HODLers. Had to see for myself and come to my own conclusion.”

Plus, he wanted to “Break the stigma and mystery bubbles around this entirely new economy and put a bit of perspective on what things are and what they aren't.” In essence, by managing his income in Bitcoin as opposed to fiat (government-issued money) income, SVN fell further down the Bitcoin rabbit hole.

Took my entire salary in #Bitcoin this year. 100% net wage paid bi-weekly.

Started off with Coinbase direct deposit, migrated to Bitwage, Cash App, then got the company to pay me directly.
— svn ⚡️ (@rarepassenger) December 20, 2022

He documented the experience in a Twitter thread, in which he concluded, “Living on Bitcoin is simple, but challenging.” For example, he mentions that accounting is a nightmare, and tax reporting has become demanding. Furthermore, the experiment has been made more interesting due to Bitcoin’s volatility. The price in fiat terms has dropped over 70% in the last year, meaning his Bitcoin savings have increased as each paycheck came in.

SVN also began writing a newsletter and documented the experience. For example, by using bitcoin as the primary form of payment, SVN was able to see firsthand how it can be used in everyday transactions. He hopes others seeking to opt out of fiat and opt-in to Bitcoin will learn from his experience.

When questioned whether he would accept other cryptocurrencies as well as Bitcoin, SVN responded that his decision-making was driven by concerns about security and sovereignty. The crypto of choice must be robust and resistant to tampering or changes, with a known and active founder and an active CEO or pressure point. In the end, SVN stuck with bitcoin because it met these criteria and offered simplicity.

Apart from SVN, there is a growing list of high-profile figures who accept their salary, or a portion of their salaries in Bitcoin, such as Belgian members of parliament and NFL stars.

Celsius amasses 30 potential bidders for its assets, withdrawal motion approved

December 21, 2022 Coin Telegraph

Auction

The bankrupt lender is set to hold auctions for its assets in January, while it's been given the green light to return some customer funds.

Bankrupt crypto lender Celsius Network has attracted 30 potential bidders over its various assets including its retail platform and mining business.

According to a company presentation filed on Dec. 20, more than 125 parties were contacted since September, with 30 potential bidders executing non-disclosure agreements — a legal contract used to protect sensitive information about a company or the bidding terms — typically required during negotiations.

Celsius said that so far, it has received multiple bids proposing a variety of potential transaction and business structures to acquire its assets — such as migrating Celsius customers to the acquirer’s platform along with a haircut of their assets — among other structures.

The lending platform also revealed it had received a number of single asset bids.

With the bidding deadline reached on Dec. 12, the auction for Celsius' various assets is now set for Jan. 10, 2023, after being pushed back from the original date of Dec. 15, according to earlier documents filed by Celsius.

*Amended dates for bidding procedures as per Celsius court filings on Dec. 15. Source: Stretto*

The latest presentation notes that as of Nov. 25 the company held coins valued at approximately $2.6 billion, but after this is combined with the value of its non-coin assets they are still $1.2 billion short of being able to pay off all debts.

Its ongoing mining operations have been successful however, with Celsius claiming that it has generated positive operating cash flow every month this year as it continues to deploy more mining rigs.

In related news, on Dec. 20 bankruptcy judge Martin Glenn has just granted a motion previously filed by Celsius on Sep. 1, allowing them to reopen withdrawals for a minority of their customers.

The assets eligible to be withdrawn are those that were only ever held in the Custody Program and for amounts less than $7,575 which were transferred from Earn or Borrow Programs into the Custody program within 90 days of its filing for bankruptcy on Jul. 13.

The order also applies to "ineligible Withhold Assets," with assets included in this definition to be determined following meetings between Celsius, the Withhold Ad Hoc Group and the Celsius Official Committee of Unsecured Creditors.

Bankruptcy judge orders $44M in crypto to be returned to Celsius customers

December 8, 2022 Coin Telegraph

Bankruptcy judge orders M in crypto to be returned to Celsius customers

Account

The funds are made up crypto held within custody accounts on Celsius that had not been transferred from earn accounts.

A federal judge has ordered crypto lender Celsius to return crypto worth around $44 million to the platform’s custody program customers.

According to Bloomberg, the verbal order was delivered by United States Bankruptcy Judge Martin Glenn in a Dec. 7 hearing, with the judge noting:

“I want this case to move forward. I want creditors to recover as much as they possibly can as soon as they possibly can.”

The amount — which applies only to crypto held within custody accounts — is a tiny fraction of the billions Celsius owes creditors, and the latest decision comes after an agreement was reached between Celsius advisers and stakeholders that crypto deposited in the custody accounts belonged to its users and not the platform.

It is important to note that this order only applies to pure custody assets — those that have never touched Celsius’ Earn accounts and have only ever been held in the custody program.

Celsius held over $210 million in custody accounts as of Aug. 29, but only around $44 million of funds fit within the latest order's criteria.

On the other hand, Celsius' Earn accounts, which are the accounts that enabled depositors to earn interest is where the majority of the $4.7 billion worth of user funds is currently being locked up.

Celsius has argued that users who deposited funds within its earn accounts gave up ownership of the funds when they agreed to the company’s terms of service, and a Dec. 5 Bloomberg report suggests that Celsius is looking to sell $18 million of stablecoins held in these accounts to fund its reorganization with Glenn set to address the issue of fund ownership on Dec. 12.

Meanwhile, on Dec. 5 the lender received approval from the judge for a $2.8 million key employee retention program (KERP) which it filed on Oct. 11.

#CELSIUS HEARING LIVE: KERP is approved. Discussing Celsius Exclusivity now. K&E talking about the Feb 15 compromise. Expanding that the auctions and plan formation are all in coordination with the UCC and they are cognizant of the level of frustration in the community.
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) December 5, 2022

The bonuses will be payable to select employees, and are intended to ensure its employees remain with the firm so that it may continue its limited business operations.

Celsius employees have been quitting in droves, with only 170 remaining with the firm compared to the 370 it had when it first started the bankruptcy proceedings.

Bankman-Fried on the hook in Texas, called to appear at Feb. hearing

November 30, 2022 Coin Telegraph

Coin Telegraph

The Texas Securities Board has asked the judge to consider leveling a cease-and-desist order, administrative fines, and forced refunds against SBF and FTX US.

Former FTX CEO Sam Bankman-Fried has been called to a Feb. 2 hearing by the Texan securities regulator as part of an investigation into whether he and FTX US have violated Texas securities laws.

In a Notice of Hearing signed off by Texas State Securities Board’s (SSB’s) director of enforcement Joe Rotunda and served to Bankman Fried on Nov. 29, the regulator alleges that FTX US offered unregistered securities to Texans through its “EARN” accounts.

The investigation was first announced on Oct. 14, before the dramatic collapse and bankruptcy of FTX’s global operations. The regulator announced at the time it was investigating FTX Trading and FTX US and its principals including Sam Bankman-Fried for offering unregistered securities through its yield-bearing products.

On Nov. 18, Rotunda used Twitter to appeal to the public to reach out to him if they were a previous client of FTX and based in Texas.

If you’re a client if @FTX_Official and you live in Texas, please reach out to me. We want to hear your story. My Texas State Securities Board email address is jrotunda@ssb.texas.gov.
— Joe Rotunda (@joe_rotunda) November 18, 2022

In the latest notice, the SSB alleged that Sam Bankman-Fried violated a section of the Securities Act during his role as the then-CEO of FTX.

“Respondent [Sam Bankman-Fried] violated Section 4003.001 of the Securities Act by offering and selling securities in Texas that were not registered or permitted for sale in Texas,” said Rotunda, adding it also didn’t register as a dealer or agent in Texas.

The regulator said it hoped that the hearing will lead to a Cease and Desist order to prevent FTX from “engaging in fraud in connection with the offer or sale of securities in Texas.”

It was also “praying” for the judge to order Bankman-Fried to return money to Texan customers that had invested in its “unregistered EARN accounts.”

The regulator also wants consideration of an “administrative fine” to be issued to Bankman-Fried should he have gained any economic benefit from the securities law violations. This amount wouldn’t exceed $20,000 per violation but could go to $250,000 for every “illegal or fraudulent act” that was perpetrated against Texans over the age of 65.

Rotunda said the hearing will commence at 9am local time on Feb. 2, 2023, and Bankman-Fried can attend the hearing using Zoom.

Bankman-Fried is understood to currently be in the Bahamas.

In a recently published interview between crypto blogger Tiffany Fong and Bankman-Fried, the former FTX CEO expressed remorse over his handling of FTX and the bankruptcy filing.

“You don’t get into the situation we got in if you, like, make all the right decisions,” he said in the recently released Nov. 16 interview.

earn

Faucets

Airdrops

Staking

Referral programs

Completing surveys

Bug bounties

Trading competitions

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