Today we’re talking about a different type of dump in the crypto market, a news dump. Well, prices dumped as well, but that’s par for the course these days. And while we typically reserve our crypto coverage for our Litepaper newsletter, there was a lot of mainstream news worth highlighting. 📰
First up, we’ve got some news from crypto exchange FTX. The U.S. president of the exchange, Brett Harrison, announced his resignation on Tuesday, saying he’ll move into an advisory role. His position is now held by Zach Dexter, though he’ll be helping the team transition through year-end.
Additionally, FTX is set to buy bankrupt crypto lender Voyager’s assets for $1.4 billion. Voyager filed for Chapter 11 in July after market volatility left it unable to redeem withdrawals for its customers. After months of negotiations, Sam Bankman-Fried’s FTX has come out on top once again. 💰
Speaking of bankruptcy, the bankrupt crypto lender Celsius Network’s CEO, Alex Mashinsky, resigned today. CFO Chris Ferraro will take over as chief restructuring officer and interim CEO as the company looks to salvage what’s left.
Meanwhile, crypto lender Nexo gained access to a U.S. bank charter by buying a stake in a regulated bank. It’s purchasing an undisclosed stake in Hulett Bancorp, which owns an under-the-radar bank called Summit National Bank. Nexo plans to offer products like checking accounts and crypto-backed loans through this relationship. Meanwhile, the bank license will provide enhanced legal safeguards to its customers and help the company expand throughout the U.S.
The Nexo news didn’t stop there, though. Eight states have filed enforcement actions against the platform. The filings claim that the company offered interest-earning accounts without first registering them as securities. As a result, the cease-and-desist orders prevent it from offering this product until it completes the necessary registration requirements. 🛑
Do Kwon, the founder behind the $60 billion collapse in Terraform Labs, says he’s not hiding. However, he’s not revealing his location to authorities either. Not hiding, but also not coming forward. Tomayto, tomahto… 🍅
Lastly, in LOL news of the day. Tether’s former auditor was fined $1 million by the SEC for its sloppy accounting practices. Way to go, SEC. That’ll show’em… 🙄