Autor Cointelegraph By Gareth Jenkinson

Genesis Trading CEO confirms 3AC exposure, parent company helps plug losses

Genesis Trading CEO confirms 3AC exposure, parent company helps plug losses

Uverejnil používateľ | júl 7, 2022 |

Digital Currency Group’s market maker and lending firm Genesis Trading has confirmed that it had investment exposure in the now-liquidated Three Arrows Capital (3AC).The insolvency and subsequent liquidation order of the embattled company sent shockwaves through the cryptocurrency space last week amid an ongoing downturn across crypto markets. A major talking point was the stake other prominent companies had in the now-defunct cryptocurrency hedge fund and the ongoing fallout.Genesis Trading is among prominent lending firms that had exposure to 3AC, which has now been confirmed by CEO Michael Moro. The company’s chief said the firm had managed to mitigate losses after 3AC had failed to meet a margin call on capital borrowed from Genesis.1/ As part of our goal in providing transparency to the market, I wanted to share the latest update at @GenesisTrading.— Michael Moro (@michaelmoro) July 6, 2022While Moro stopped short of revealing how much it had lent to 3AC, he unpacked the terms of the firm’s loan to the hedge fund and the subsequent chain of events after the debtor failed to meet its repayment obligations:“The loans to this counterparty had a weighted average margin requirement of over 80%. Once they were unable to meet the margin call requirements, we immediately sold collateral and hedged our downside.”Related: The crypto industry needs a crypto capital market structureGenesis Trading’s parent company Digital Currency Group has assumed some of the liability owed by 3AC in order to ensure Genesis has adequate capital to continue its operations. The firm will continue to explore options to try and recoup losses in the wake of 3AC’s collapse.Reports suggest that Genesis is facing losses in the hundreds of millions of dollars while the company has yet to disclose the details of its exposure to 3AC. Cointelegraph has reached out to the market maker for comment.Voyager Digital was another casualty of 3AC’s collapse, as the cryptocurrency exchange was forced to postpone trading, deposits and withdrawals at the start of July. The hedge fund failed to repay a 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loan to the American exchange.

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El Salvador's Bitcoin wallet Chivo scores $52M in remittances in 2022

El Salvador's Bitcoin wallet Chivo scores $52M in remittances in 2022

Uverejnil používateľ | júl 6, 2022 |

Salvadorans living abroad have sent over $50 million in remittances from January to May this year, according to the El Salvador Central Reserve Bank.Douglas Rodríguez, president of the El Salvador central bank, unpacked the general economic outlook for the country on the local television news program Frente a Frente on Wednesday.A major takeaway was the $52 million of remittances processed by national digital wallet service Chivo through the first five months of the year. This marks a 3.9%, $118 million increase in value when compared to the same period in 2021.Chivo was launched in September 2021 as the Central American country became the first in the world to adopt Bitcoin (BTC) as legal tender. The launch of the app reportedly attracted more than 2 million users in less than a month, leading to major teething problems for the state-endorsed payment platform.The government-sanctioned payment service provider was relaunched in February this year, necessitated by the onboarding of an estimated 4 million users looking to make use of low fees for payments and transfers made in BTC. American cryptocurrency exchange software firm AlphaPoint came onboard to address scaling and stability issues.Related: Central African Republic president launches crypto initiative following Bitcoin adoptionChivo offers users commission-free transfers and payments in BTC and U.S. dollars. El Salvador’s president and Bitcoin proponent Nayib Bukele has previously claimed the app will save citizens some $400 million in annual commissions spent using conventional remittance and payment service providers in the country.The application also makes use of the Bitcoin layer-2 payment protocol Lightning Network, which provides low-fee BTC transactions. The adoption of Bitcoin and Chivo in El Salvador has had a measurable effect on the uptick in Lightning Network transaction volumes – with a 400% increase in payment volume over the past year.

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Virginia county Fairfax commits $35M to Van Eck crypto lending fund

Virginia county Fairfax commits $35M to Van Eck crypto lending fund

Uverejnil používateľ | júl 6, 2022 |

Virginia county Fairfax has begun investing a portion of a $35 million allotment into a cryptocurrency lending fund managed by global asset managers VanEck.The firm announced that it had received an initial tranche of the investment commitment from Fairfax County, which is allocating funds from two retirement systems into a variety of cryptocurrency-focused investment avenues.Fairfax County had previously hinted at delving into the world of Decentralized Finance (DeFi) yield farming as part of its progressive attitude towards the cryptocurrency space. The county began investing a small portion of holdings from its Employees’ Retirement System and the Police Officers Retirement into various cryptocurrency companies and ventures from 2018 onwards.Related: Amid crypto bear market, institutional investors scoop up Bitcoin: CoinSharesAs Fairfax continues to diversify its cryptocurrency investment strategy, its foray into the world of DeFi has officially begun with its investment in VanEck’s New Finance Income Fund. The fund offers short-term lending arrangements with cryptocurrency companies, platforms and businesses. According to the VanEck website, the fund lends out fiat currency and stablecoins to borrowers in the cryptocurrency space. Targeting accredited investors, the fund offers high-yield income exposure to cryptocurrencies and requires a $1 million initial investment. The investment manager touts ‘a simplified approach that alleviates the operational burden of direct digital assets lending.’Fairfax County has slowly increased its financing into the space, committing funds to seven cryptocurrency-focused allocations. One of these allocations looks to profit from volatility in the space, with a hedge fund intending to leverage yield farming, basis trading and exchange arbitrage opportunities.The County previously issued an update on its investments into the cryptocurrency and blockchain space, with the Employees’ and Police Retirement Systems investing $10 million and $11 million respectively into Morgan Creek’s Blockchain Opportunities Fund. The capital allotment from both funds is less than 1% of their total assets under management – as the county slowly gauges the investment potential in the alternative asset class.

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Meta signals closure of Novi wallet after a 10-month pilot

Meta signals closure of Novi wallet after a 10-month pilot

Uverejnil používateľ | júl 4, 2022 |

Meta’s first foray into the world of cryptocurrencies is set to end in September with the closure of its Novi wallet pilot project.Novi’s website landing page has been revamped to inform pilot users that the platform will be decommissioned on September 1. This ends an eight-month-long pilot project that saw users based in the United States and Guatemala trial the cryptocurrency-powered payment platform.Users are directed to withdraw the remaining funds from their respective Novi wallets to their linked bank accounts. Guatemalan users can also withdraw holdings in cash at a select site in Guatemala City.Novi users are also encouraged to download their account information before the closure date, including transactions and activity on their accounts. From Sep. 1, users will no longer be able to log into their wallets. Deposits to Novi wallets will also be discontinued from July 21.Cointelegraph has reached out to Novi to ascertain whether there are plans to launch a working product in the future with multiple cryptocurrency support. The closure of the Novi pilot follows some five months after Meta’s stablecoin project Diem was sold to Silvergate Capital Corporation. Diem was set to be the stablecoin that powered the Meta ecosystem and was initially intended to be the native currency of the Novi wallet.Regulatory pressure in the U.S. led to Meta selling the intellectual property of Diem to Silvergate, which was set to integrate the underlying blockchain infrastructure and assets into its existing payment platform.Related: NFTs to appear on Facebook, cross-post with Instagram as Meta Web3 expansion continuesThe failure to launch of Diem saw Novi make use of the Paxos-powered stablecoin Pax Dollar (USDP) as its native dollar-backed token for payments. American cryptocurrency exchange Coinbase teamed up with Novi as its custody partner to manage and store user funds. Meta had planned to migrate the Novi platform to the Diem blockchain ecosystem once it had attained regulatory approval. The impending end of the Novi pilot comes on the heels of Meta founder Mark Zuckerberg announcing the change of Facebook Pay to Meta Pay on his public Facebook profile on June 22. The functionality will remain largely unchanged, save for the introduction of a digital wallet for the metaverse “that lets you securely manage your identity, what you own, and how you pay.”Meta’s efforts to integrate cryptocurrencies and stablecoins into its ecosystem has been an arduous journey. Facebook’s parent company rebranded to Meta, while the Diem ecosystem also underwent its own rebranding debacle from Libra following massive pushback from regulators around the world.

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Argentina carries out crypto wallet seizures linked to tax delinquents

Argentina carries out crypto wallet seizures linked to tax delinquents

Uverejnil používateľ | júl 1, 2022 |

Argentina’s tax authority has seized more than 1,000 cryptocurrency wallets linked to delinquent taxpayers in the country.According to a report from local media outlet iProUP, courts across Argentina authorized the seizure of 1,269 cryptocurrency wallets belonging to citizens with outstanding debt to Argentina’s Federal Administration of Public Income (AFIP).AFIP signaled its intent to go after cryptocurrency wallets belonging to tax delinquents in May, ordering cryptocurrency exchanges and payment service providers to deliver monthly reports on users of their platforms.Crypto services were requested to verify the identity of clients and keep records of user accounts as well as detailed financial statements including income, expenses, and monthly balances. With these firms supplying this information to the tax authority, AFIP has been able to enforce embargoes on the holdings in wallets linked to errant taxpayers over the past few months.AFIP’s current standard operating procedure typically targets bank accounts and other liquid assets to recoup debts as the first port of call. If a taxpayer cannot settle their debt or is unbanked, the AFIP will look to seize other assets belonging to the individual.Argentina’s crypto plans have been put on hold after its central bank stepped in to stop recent offerings from two of the largest financial institutions in the country. https://t.co/3VXpoZ0pSk— Cointelegraph (@Cointelegraph) May 6, 2022The Covid-19 pandemic gave some respite to Argentinians who were in the crosshairs of the AFIP, as a 19-month moratorium on asset seizures was enforced to alleviate financial pressures on citizens.Related: Argentines turn to Bitcoin amid inflation worries: ReportThe move comes as Argentinians continue to adopt cryptocurrency as a means to combat surging inflation, a devaluing peso and general economic malaise. A recent Reuters report citing data from Americas Market Intelligence noted that Argentina has seen an increase in cryptocurrency adoption eclipsing other South American countries, driven by citizens looking for a safe-haven against rising inflation.While Argentina’s tax authority hones in on the digital assets of non-compliant tax payers, its government and central bank have been at odds over the treatment of cryptocurrencies.President Alberto Fernandez made headlines by highlighting the potential for cryptocurrencies to help combat inflation in August 2021, just as Argentina’s central bank president Miguel Pesce hinted at forthcoming regulation of the industry and its intersection with the conventional financial system.

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