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SVB Financial Group Files for Chapter 11 Bankruptcy Protection to ‘Preserve’ Firm’s Value

SVB Financial Group Files for Chapter 11 Bankruptcy Protection to ‘Preserve’ Firm’s ValueOn March 17, 2023, SVB Financial Group, the parent company of Silicon Valley Bank, filed for Chapter 11 bankruptcy protection in the Southern District of New York. The company stated that it is no longer associated with Silicon Valley Bank (SVB) after the Federal Deposit Insurance Corporation (FDIC) placed it into receivership last week. 3 […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Lido Protocol Reveals Plans for Withdrawal Feature Ahead of Ethereum’s Shanghai Hard Fork

Lido Protocol Reveals Plans for Withdrawal Feature Ahead of Ethereum’s Shanghai Hard ForkWhile the Ethereum community prepares for the upcoming Shanghai hard fork in March, the development team for the liquid staking project Lido revealed plans to create an in-protocol withdrawal feature. Lido’s team is seeking community feedback on the proposal that would allow withdrawals after the Shanghai upgrade is completed. Lido Dominates Defi Economy With $7.9 […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

New FTX CEO Discusses Possibility of Rebooting Defunct Crypto Exchange in First Interview Since Taking Over

New FTX CEO Discusses Possibility of Rebooting Defunct Crypto Exchange in First Interview Since Taking OverFollowing recent disclosure that FTX debtors and bankruptcy administrators located $5.5 billion in liquid assets, the new FTX CEO John J. Ray III discussed the business in his first interview since taking over the exchange’s restructuring process. Ray detailed during the interview that he is open to the possibility of reviving the now-defunct digital currency […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Osprey Vies for Control of Grayscale’s Bitcoin Trust; Tron’s Justin Sun Offers to Invest Up to $1B on DCG Assets

Osprey Vies for Control of Grayscale’s Bitcoin Trust; Tron’s Justin Sun Offers to Invest Up to B on DCG AssetsFollowing charges by the U.S. Securities and Exchange Commission against the crypto exchange Gemini and the digital currency lender Genesis, Tron founder Justin Sun told the press that he may be able to purchase assets from Genesis, up to $1 billion, “depending on their evaluation of the situation.” Additionally, the crypto investment manager Osprey has […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Wyre Announces Modification of Withdrawal Policy, Pushing Topps to Temporarily Suspend NFT Marketplace Transactions

Wyre Announces Modification of Withdrawal Policy, Pushing Topps to Temporarily Suspend NFT Marketplace TransactionsFollowing reports that the crypto payments firm Wyre was shutting down operations, CEO Ioannis Giannaros offered a contradicting story, stating that the firm was merely “scaling back.” Wyre has now announced that it is “modifying” its withdrawal policy, citing the crypto industry downturn and the “macroeconomic climate” as factors that have affected the company. On […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Creditor offers Bitcoin miner Core Scientific $72M to avoid bankruptcy

B. Riley suggested the embattled miner’s issues were “self-imposed” and outlined a path for it to avoid bankruptcy.

Financial services platform B. Riley has offered Bitcoin (BTC) miner Core Scientific $72 million in financing to avoid bankruptcy and preserve value for Core Scientific stakeholders.

B. Riley, a top lender to Core Scientific with $42 million in loans currently outstanding, outlined the terms of the financing agreement in a Dec. 14 letter noting it's prepared to fund the first $40 million “immediately, with zero contingencies.”

The finance platform suggested the remaining $32 million would be conditional on the BTC miner suspending all payments to equipment lenders while Bitcoin prices are below $18,500.

The last time the price of Bitcoin was above $18,500 was on Nov. 9, before it fell over 14% in one day.

B. Riley’s assessment of the predicament Core Scientific is in was scathing, suggesting it had deployed “an aggressive, ill-conceived strategy […] to continue to build out power facilities and expand miners while never selling Bitcoin on hand and never hedging prices.”

It noted due to this approach Core Scientific was forced to sell 9,618 BTC in April at a value of $362 million which represented a significant loss to the miner.

Related: Nasdaq warns Bitcoin mining firm Bitfarms about share price deficiency

Core Scientific admitted in a quarterly report filed on Nov. 22 that it did not have enough cash to get through till 2023. It also said it had doubts about its ability to raise funds through financing or capital markets.

In an Oct. 26 filing, the firm pointed to the low price of Bitcoin, rising electricity costs and a refusal from bankrupt crypto lender Celsius to repay a $2.1 million loan as the reason for its financial woes.

B. Riley seemed confident Core Scientific would accept the financing offer and reminded the miner of its responsibility to shareholders, noting:

“In our view it would be a gross violation of the fiduciary duties owed by the Board and Management for those fiduciaries—who must put our interests ahead of their own—to authorize a Chapter 11 filing.”

Since the beginning of 2022, the share price of Core Scientific has fallen 97.7% from $11.02 to $0.25.

A one-year chart showing Core Scientific share price on Nasdaq. Source: TradingView

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security

Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term SecurityOn September 1, Vitalik Buterin conducted an interview with the economics author Noah Smith and the co-founder of Ethereum spoke an awful lot about Bitcoin and the network’s long-term security. Buterin also discussed the crypto economy’s crash and said he was “surprised that the crash did not happen earlier.” Buterin: Bitcoin Is ‘Not Succeeding at […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Axie Infinity Loses $620 Million After Hacker Compromised Ronin Validators

Axie Infinity Loses 0 Million After Hacker Compromised Ronin ValidatorsAccording to Sky Mavis, the creators of the blockchain NFT game Axie Infinity, the Ronin network has been attacked, and a hacker has managed to siphon 173,600 in ethereum and 25.5 million usd coin (USDC). The attacker has obtained roughly $620 million worth of crypto assets, and the Ronin bridge and Katana Dex have been […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces

Central Bank of Turkey Expands Research, Prepares to Test Digital Lira on New Platform

Central Bank of Turkey Expands Research, Prepares to Test Digital Lira on New PlatformThe Turkish central bank has established a new platform together with technology stakeholders to further the development of a digitalized version of the national fiat currency. The new collaboration will allow Turkey to focus on expanding research and conducting tests of the prospective digital lira. Turkey Sets Up Digital Lira Collaboration Platform The Central Bank […]

Cartel-Linked Crypto Laundering Ring Disrupted by Federal Task Forces