We have collected the most important news from crypto industry participants over the week.
- Genesis has settled SEC claims related to its Earn product with Gemini.
- The ex-British Chancellor of the Exchequer became an advisor to Coinbase.
- Journalists learned about Binance allowing large clients to store crypto assets in third-party institutions.
- Jihan Wu will replace Linghui Kong as CEO of Bitdeer.
- Bitfinex Securities became the first registered service provider in El Salvador.
Genesis settles SEC claims over Earn joint product with Gemini
Part of a group of companies DCG landing platform Genesis settled proceedings with SEC regarding the offer of unregistered securities as part of the Earn product jointly with the Gemini exchange.
The platform agreed to pay $21 million in fines. This will happen after full repayment of debt to creditors.
In May 2023, DCG fell behind on a $630 million payment to compensate Gemini Earn users.
In July, the Winklevoss brothers' exchange sued the company and its founder Barry Silbert, calling the latter “the architect and mastermind of the fraud.” Digital Currency Group later asked to dismiss the lawsuit.
In August, DCG promised to reimburse Genesis creditors between 70% and 90% of the funds.
The latter called the proposal “unsatisfactory” and threatened to block any final bankruptcy deal with similar terms.
A month later, DCG proposed a new option for restructuring the subsidiary.
In January 2024, creditors challenged the holding's repayment of debt to Genesis.
Previously, the organization agreed to pay $8 million as part of an agreement with the New York regulator.
Former UK Chancellor of the Exchequer Becomes Coinbase Advisor
Former British Chancellor of the Exchequer George Osborne joined to the Bitcoin exchange Coinbase as an advisor. He is currently a partner at investment bank Robey Warshaw.
The official, who headed HM Treasury from 2010 to 2016, interacted with the platform at a fintech event in London and at the World Economic Forum in Davos, Switzerland.
Osborne will join the board formed to develop Coinbase's global strategy. It also features former US Secretary of Defense Mark Esper and former Pennsylvania Senator Patrick Toomey.
On January 29, Coinbase announced that it would begin charge a commission in the amount of 0.1% when converting USDC into fiat for amounts exceeding $75 million. For transactions from $150 million to $500 million, the figure will be 0.15%, over $500 million — 0.2%.
Prime customers who hold more than $500 million in assets in Coinbase or have an average balance of $100 million during a calendar month will be able to continue the same terms.
The fee waiver also applies to Tier 1 and Tier 2 members of the Coinbase Exchange Liquidity program.
In January, Coinbase called Bitcoin “mainstream” after launching an ETF. The platform acts as a custodian for nine of the 11 approved exchange-traded funds.
Journalists learned about Binance allowing large clients to store crypto assets in third-party institutions
Bitcoin exchange Binance has given large traders the opportunity to store their digital assets with independent banks like Sygnum or FlowBank, according to Financial Times.
The platform accommodated customers who expressed security concerns after US authorities fined the organization $4.3 billion, according to the publication.
Previously, platform clients could store their assets either on the exchange or through the Ceffu custodian. The latter claims to be “the only institutional custodian partner of the Binance exchange.” US regulators described Ceffu as a “mysterious organization linked to Changpeng Zhao's company”, according to the FT.
January 31 organization confirmed rumors about discussions about the sale of a controlling stake in the South Korean exchange Gopax. The company became a shareholder of the platform in February 2023.
In November 2022, Gopax suspended principal withdrawals and interest payments on its DeFi platform GoFi due to issues at parent company Stream. The latter was one of Genesis's 10 largest creditors.
Jihan Wu will replace Linghui Kong as CEO of Bitdeer
Jihan Wu, founder and chairman of the board of directors of mining service provider Bitdeer, will replace Linghui Kong as CEO. The latter will move to the position of Chief Operating Officer.
Bitdeer announced the appointment of Mr. Jihan Wu, the Company's Founder and Chairman of its Board of Directors, as Chief Executive Officer of the Company, effective on March 1, 2024. The Company's current Chief Executive Officer Mr. Linghui Kong will transition to the role of…
— Wu Blockchain (@WuBlockchain) January 29, 2024
Wu said the leadership change is intended to ensure that he and Kong “focus on [своих] relevant areas of expertise and take full advantage of emerging strategic growth opportunities.” Kong has served as CEO since January 2021.
In April 2023, Bitdeer went public by listing on the Nasdaq through a reverse merger with SPAC Blue Safari Group Acquisition Corp.
Bitfinex Securities Becomes El Salvador's First Registered Service Provider
El Salvador authorities registered tokenized stock and bond trading platform Bitfinex Securities as the first licensed crypto service provider.
The organization has begun accepting customer applications and has created a list of potential tokenized financial assets that are expected to hit the market in the first half of this year.
Following the successful launch of spot Bitcoin ETFs, Bitfinex expects high demand for such regulated digital asset investment vehicles.
In 2021, Bitfinex launched the regulated Bitfinex Securities platform in Kazakhstan based at the Astana International Financial Center.
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