Značka: moneygram

Crypto Biz: Was Celsius just a Ponzi after all?

Crypto lender Celsius was one of the biggest casualties of the bear market. After halting withdrawals for months due to “extreme market conditions,” the distressed lender officially filed for Chapter 11 bankruptcy on July 13. Now, the federal judge overseeing the bankruptcy proceedings has ordered the case examiner to determine whether the company was operating like a Ponzi scheme. Disgruntled Celsius customers have made a strong case that the company’s business operations met the legal definition of a Ponzi. After all, it didn’t take long for Celsius’ business model to crumble under volatility. This is one case we should all be monitoring very closely. In this week’s Crypto Biz, we once again revisit the Celsius debacle. We also explore Binance’s investment in Elon Musk’s Twitter deal and MicroStrategy’s renewed commitment to Bitcoin.Judge orders probe to investigate whether Celsius was a PonziIn finance, a Ponzi scheme is a fraudulent investment practice where returns are generated and paid out to existing investors using money from later investors. Allegations of Ponzi have now been levied at Celsius by its former customers, who say the firm used the assets of new users to pay yields and facilitate withdrawals of existing users. These allegations are being taken seriously by federal judge Martin Glenn, who ordered the case examiner and committee of Celsius creditors to probe the matter closely. Glenn was quoted as saying he was “shocked” when he saw redactions made by Celsius related to an Oct. 11 motion that outlines employee bonuses. This one could get explosive. Twitter monetization and free speech drove Binance’s $500M injection — CZCrypto exchange Binance was one of several firms to help finance Elon Musk’s $44 billion acquisition of Twitter. Binance doled out $500 million to help fund the initiative, with CEO Changpeng “CZ” Zhao touting Twitter’s monetization potential and eventual transition to Web3 as core reasons behind the investment. Of course, CZ expects to be paid back one day — even though Twitter has only occasionally turned a profit since it went public in 2013. I wouldn’t hold your breath, CZ. A small contribution to the cause. https://t.co/xD9XZxOWfL— CZ Binance (@cz_binance) May 5, 2022MicroStrategy CEO reiterates ‘long term’ Bitcoin play in Q3 earningsBusiness intelligence firm MicroStrategy has no plans to unwind its massive exposure to Bitcoin and will continue investing in the digital asset for the long term. That commitment didn’t come from Michael Saylor, who stepped down as CEO in August to focus on Bitcoin (BTC) evangelism, but from new company head Phong Le. “We have not sold any Bitcoin to date,” Le said during MicroStrategy’s Q3 earnings call. “To reiterate our strategy, we seek to acquire and hold Bitcoin for the long term. And we do not currently plan to engage in sales of Bitcoin.” MicroStrategy reported a net loss of $27.1 million for the quarter. Moneygram to enable users to buy, sell and hold cryptocurrency via mobile appFresh news on the adoption front: digital payments company MoneyGram has announced that nearly all of its United States customers can buy, sell and hold cryptocurrencies through its mobile app. The company will initially support Bitcoin, Ether (ETH) and Litecoin (LTC) transactions, with plans to add more crypto assets in 2023. MoneyGram’s global audience is over 150 million people. If crypto adoption takes off in the United States, we could see similar support being launched worldwide. However, that will depend on regulations, the company said. Before you go: Why did Dogecoin pump this week?The cryptocurrency market rallied sharply to end October, with popular memecoin Dogecoin (DOGE) surging 150% on the back of Elon Musk’s purchase of Twitter. Are we still in a bear market or have the tides turned? In this week’s Market Report, I sat down with Marcel Pechman to discuss how Musk’s Twitter purchase could impact crypto and whether we are nearing a definitive bottom for this cycle. You can watch the full replay below (spoiler alert: I’m not very optimistic): [embedded content]Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

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Moneygram to enable users to buy, sell and hold cryptocurrency via mobile app

Global digital peer-to-peer (P2P) payments company MoneyGram has announced on Nov. 1 that users in nearly all U.S. states and the District of Columbia, can buy, sell, and hold cryptocurrency; specifically, Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), via its MoneyGram mobile app. The digital payments company said that it plans to add more digital currencies to its app in 2023, as global regulations allow. Alex Holmes, Chairman and CEO of MoneyGram, stated:”As consumer interest in digital currencies continues to accelerate, we are uniquely positioned to meet that demand and bridge the gap between blockchain and traditional financial services thanks to our global network, leading compliance solutions, and strong culture of fintech innovation.”The rollout of this latest crypto-related initiative is a part of the company’s vision to increase adoption by bringing “real-world cryptocurrency and blockchain use cases to life.” Moneygram shared that this crypto addition to its app was made possible through its partnership with licensed crypto exchange and API-driven crypto-as-a-service provider, Coinme. Related: Paypal’s crypto ‘super app’ set to roll out soonDespite being in a bear market with no clear end in sight, some companies appear to be laying t foundations to expand into the crypto world. On Oct 25, Cointelegraph reported that Western Union filed three trademarks that covered managing digital wallets, exchanging digital assets and commodities derivatives, issuing tokens of value, and brokerage and insurance services. Also in October, the mobile payment processing app, Cash App, added support for transactions via the Bitcoin Lightning Network. The new feature is set to allow Cash App users to send and receive Bitcoin(BTC) on the faster, more efficient layer-2 protocol.

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MoneyGram’s USDC transfer service launches in several countries

Cross-border transfer service MoneyGram officially launched its stablecoin-powered payment channel on Friday, giving users the ability to send USD Coin (USDC) payments worldwide that can be withdrawn as cash by recipients. The service is being rolled out across several key remittance markets, including Canada, the United States, Kenya and the Philippines, Circle and MoneyGram announced Friday. Global cash-out functionality will be available by the end of June. To encourage adoption, the USDC transfer service will carry zero fees for the first 12 months. As Cointelegraph reported, MoneyGram’s new transfer service was built on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients around the world. The service is intended to bridge the gap between digital assets and physical cash currency, as well as demonstrate the utility of crypto payments.It’s official: @DenelleDixon announces the launch of @MoneyGram and @StellarOrg’s crypto-to-cash service. pic.twitter.com/vzAzlBNDxD— Stellar (@StellarOrg) June 10, 2022Stellar Development Foundation CEO Denelle Dixon said the new transfer channel will help the world’s unbanked population access the digital economy for the first time. While estimates vary, the World Bank says that roughly 1.7 billion adults are unbanked, which means they lack access to an account at a financial institution. Whether through decentralized finance, central bank digital currencies or crypto-powered transfer and settlement services, blockchain technology has been posited as a potential solution to financial exclusion.Related: Blockchain tech offers multiple paths to financial inclusion for unbankedIn related news, Circle announced Friday that it had a definitive agreement to acquire crypto infrastructure platform CYBAVO, which it believes will further pave the way for USDC adoption. Circle’s USDC is the second-largest stablecoin by market capitalization and maintains a one-for-one dollar peg backed by cash and short-dated U.S. Treasuries.

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MoneyGram to open transfer platform with Stellar, eyes wallet deal in El Salvador

MoneyGram International, one of the world’s largest cross-border transfer services, is partnering with the Stellar blockchain to create a stablecoin-based platform for money transfers. The new service will allow Stellar wallet users to send Circle’s USD Coin (USDC) to recipients, who will be able to cash them out for fiat currency through the MoneyGram network.“We’re trying to be a bridge from the crypto world to the fiat world,” MoneyGram CEO Alex Holmes said in an interview.Holmes also said MoneyGram is in talks with third-party companies that provide digital wallets in El Salvador alongside the government-backed Chivo wallets, which were introduced when the country made Bitcoin (BTC) legal tender last year. Through a deal with one of those companies, MoneyGram would be able to compete for BTC transfers as well. “If a country like El Salvador is going to make Bitcoin seamless with US dollars in country, I think that consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin,” Holmes told Bloomberg. “If that’s where the world is going, let’s participate in that world and let’s see how we can help fulfill that opportunity.”Related: Moneygram buys 4% stake in crypto ATM operator CoinmeMoneyGram had a previous deal with Ripple Labs, which once owned a large package of its stock. Ripple and MoneyGram severed their relationship in March 2021 shortly after the United States Securities and Exchange Commission filed a lawsuit against Ripple. MoneyGram’s involvement with Ripple resulted in a class-action suit against the payment service in March 2021. MoneyGram and Stellar began working together in October 2021 and launched a pilot program in November. Earlier that summer, reports circulated that Stellar was interested in a takeover of MoneyGram.

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Moneygram buys 4% stake in crypto ATM operator Coinme

Money transmission network MoneyGram now has a minority investment in crypto ATM operator Coinme following a Series A funding round.In a Wednesday announcement, MoneyGram said it had purchased a roughly 4% ownership stake in Coinme — likely more than $764,000 given its valuation of $19.1 million in June — as part of a strategic investment in the crypto company. The investment follows a May 2021 partnership between the two firms aimed at expanding access to crypto-fiat exchanges. “We continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” said MoneyGram CEO Alex Holmes. “Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”Currently, U.S.-based MoneyGram users are able to exchange their Bitcoin (BTC) and crypto holdings for cash at point-of-sale outlets. Coinme’s website reports more than 23,000 ATM locations in the United States, including MoneyGram and Coinstar.While MoneyGram seemingly winds up its partnership with Coinme — currently only operating in the United States — it scaled back its collaboration with blockchain-based payments firm Ripple Labs in 2021. The two firms inked a strategic partnership agreement in 2019, processing billions of dollars through Ripple’s RippleNet and On-Demand Liquidity services. However, MoneyGram suspended the partnership in February 2021 following the U.S. Securities and Exchange Commission filing a complaint against Ripple, alleging securities violations.Related: MoneyGram launches USDC settlement using the Stellar blockchainAt the time of publication, shares of MoneyGram stock (MGI) are trading for $7.55, having fallen roughly 2.5% in the last 24 hours.

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