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Dasset Enters Liquidation: Key Details

by Blockchain NewsAugust 16, 2023

Digital Asset Exchange Limited, which trades under the name ‘Dasset‘, a New Zealand-based digital assets trading platform, has entered liquidation. David Ruscoe and Russell Moore from Grant Thornton New Zealand have been officially appointed as the liquidators.

The decision for liquidation was influenced by a notable decrease in asset values and trading levels, which affected Dasset’s profitability. The management of Dasset believed that appointing liquidators was the most suitable course of action for the benefit of all involved parties.

Russell Moore commented on the situation, stating, “We understand users and creditors will be disappointed by the news that Dasset has gone into liquidation. The process of securing the assets is complex; there are third parties involved and nearly 100 different types of digital assets. We will work with management and third parties to resolve any issues as soon as possible, and we will update all stakeholders on progress as regularly as possible.”

Grant Thornton has made it a priority to contact all of Dasset’s customers and suppliers regarding this development in the coming days. Furthermore, an initial report detailing the situation will be made available on the New Zealand Companies Office website within the next week.

The discontinuation of Dasset is reflective of broader challenges faced by cryptocurrency exchanges, such as stringent regulations and dwindling trading volumes.

On September 14th, 2023, the cryptocurrency exchange Txbit will formally halt its operations, as announced on their Medium page. The main factors driving this decision are “unfavorable market dynamics, increasing regulatory constraints, and uncertainty regarding the legal standing of cryptocurrencies in different jurisdictions.”

Even industry titans are not immune to these challenges. As per the electronic disclosure system managed by the Financial Supervisory Service on August 16, Bithumb Korea, the premier crypto exchange in Korea and 13th globally in trading volume, reported an operational loss of KRW 3.442 billion for the second quarter. This contrasts sharply with the profit of KRW 38.42 billion observed during the same quarter in the preceding year.

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US Government to Sell Seized Silk Road Bitcoin

by Blockchain NewsMarch 31, 2023

The United States government has announced plans to sell more than 41,000 Bitcoin that were seized as part of the case against Silk Road creator Ross Ulbricht. The news comes from a filing submitted to the U.S. District Court for the Southern District of New York on March 31, which detailed the ongoing proceedings against James Zhong.

The U.S. government authorities have already begun liquidating roughly 51,352 Bitcoin (BTC) seized in the Ulbricht case. The filing reported that officials sold around 9,861 BTC for over $215 million on March 14, which leaves approximately 41,491 BTC remaining.

According to the court filing, “The Government understands [the Bitcoin] is expected to be liquidated in four more batches over the course of this calendar year.” It remains to be seen how the Bitcoin market will react to such a large influx of cryptocurrency hitting the market, but it is likely that this news will generate significant interest among investors.

Silk Road was an online black market that allowed users to purchase illegal goods and services using Bitcoin. The website was shut down by the FBI in 2013, and its creator, Ross Ulbricht, was arrested and sentenced to life in prison without parole in 2015.

The U.S. government’s seizure of the Bitcoin associated with Silk Road was one of the largest cryptocurrency seizures in history. At the time, the Bitcoin was worth roughly $1 billion, although its value has since increased significantly.

This announcement from the U.S. government is just the latest in a series of moves to regulate the cryptocurrency industry. Regulators around the world are increasingly concerned about the potential for cryptocurrencies to be used in illegal activities such as money laundering and terrorism financing. As a result, we can expect to see further scrutiny of the industry in the years ahead.

In conclusion, the U.S. government’s decision to liquidate the seized Silk Road Bitcoin is likely to have a significant impact on the cryptocurrency market. Investors will be closely watching the market to see how it reacts to such a large influx of Bitcoin, and regulators will be keen to ensure that the cryptocurrency industry is not used for illegal activities. We will continue to monitor this developing story and provide updates as they become available.

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Tagged : Bitcoin / Liquidation / News / Ross Ulbricht / Silk Road / Us Government

Zipmex Misses Buyout Payment

by Blockchain NewsMarch 24, 2023

According to recent reports, the Singapore-based cryptocurrency exchange known as Zipmex has failed to make a payment totaling $1.25 million as required by the terms of its buyout agreement with V Venture. V Venture is a venture capital firm that is owned by the Thai shipping company known as Thoresen Thai Agencies. Zipmex warned V Venture in a letter that if the money was not received, it was possible that the company would have to begin the process of liquidating its Zipmex Technologies segment and halt wages. The activities in Thailand, Singapore, Indonesia, and Australia will be impacted as a result of this.

This is the fourth time that V Venture has failed to make a payment, and the delay may result in an inquiry being launched by the Thai Securities and Exchange Commission. When an agreement with Coinbase to acquire it fell through in July 2022, Zipmex temporarily halted the processing of withdrawal requests. Due to the exchange’s exposure to Babel Finance, which purportedly owed Zipmex $48 million and froze withdrawals in June, the exchange was having problems maintaining enough liquidity. Moreover, Zipmex has an exposure to Celsius of 5 million dollars.

In August of 2022, Zipmex was given protection from its creditors for a period of three months. But, since V Venture did not make their payment on time, the exchange may be forced to take extreme actions in order to maintain their financial stability. According to CoinMarketCap, the Zipmex token has dropped from its all-time high of $0.1029 on March 23 to its current price of $0.057 at the time of this writing. The Zipmex token is listed on multiple cryptocurrency exchanges, some of which include Binance and BitForex.

The last year has been a difficult one for Zipmex, with many unsuccessful takeover bids, problems with cash, and the need for creditor protection. The failure to make a payment by V Venture may prove to be the death knell for the faltering exchange, which may be forced to sell off one of its components in order to continue operating. The failure to make timely payments can potentially result in an inquiry by regulatory authorities, which would further compound the exchange’s problems.

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Tagged : Buyout / Liquidation / News / Payment / V VENTURE / Zipmex

FTX to Sell Remaining Interest in Sequoia Capital to Abu Dhabi Sovereign Wealth Fund

by Blockchain NewsMarch 9, 2023

According to the papers filed with the court, Alameda Research, the investment division of FTX, has reached an agreement to sell the company’s remaining stake in Sequoia Capital to Al Nawwar Investments Company Ltd, which is controlled by the government of Abu Dhabi. The transaction is valued at $45 million, and its completion is anticipated by the 31st of March, provided that the Delaware bankruptcy judge John Dorsey gives his consent. FTX made the decision to enter into the agreement with Purchaser because Purchaser had a more attractive offer and was capable of carrying out the selling transaction in a shorter amount of time.

The remaining stake that FTX has in Sequoia Capital has been put up for sale as part of the company’s ongoing attempts to sell its investments and satisfy its financial obligations to its creditors. Previously, Dorsey gave his blessing for the firm to sell certain assets, such as LedgerX, Embed, FTX Japan, and FTX Europe. This allowed the company to go through with the sale.

After being sued by Alameda Research for unpaid loan repayments, Voyager Digital has decided to put aside $445 million in response to the lawsuit. Dorsey has given his blessing to the move, and as a result, the firm will have to put the money away in order to pay off its debt.

The recent developments in the bankruptcy case involving FTX bring to light the persistent difficulties that cryptocurrency exchanges must overcome and the need of preserving their financial stability. Since the cryptocurrency sector is expected to continue expanding in the next years, it is essential that businesses place a high priority on openness and accountability in order to safeguard the interests of creditors and investors. The decision by Voyager Digital to put aside $445 million and the sale of the remaining shareholding held by FTX in Sequoia Capital both reflect a commitment to financial discipline and might assist to recover trust in the sector.

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Tagged : Abu Dhabi / Alameda Research / FTX BANKRUPTCY CASE / Liquidation / News / SEQUOIA CAPITAL

German Crypto Neobank Nuri to Sets Date to Close its Business

by Blockchain NewsOctober 18, 2022

Nuri, a cryptocurrency-focused German Neobank has set December 18 as the date it will stop access to its platform and find ways to liquidate its assets.

In an open letter to its workers, key stakeholders, and the general public, Nuri’s CEO Kristina Walcker-Mayer described how the company’s attempt to find additional funding or an acquirer had been futile considering the current economic pangs in the global financial ecosystem as a whole.

Founded in 2015 as Bitwala, Nuri occupies a very pivotal position in the cryptocurrency ecosystem and offers a regulated platform that enables customers to invest in Bitcoin (BTC) and Ethereum (ETH) amongst others.

The company raised the sum of $45 million from top investors including Coparian, Earlybird Venture Capital, and Sony Financial Ventures per data from Dealroom. Apparently, in the crypto wake of the crypto winter and the mishap that befell its key trading partners, the startup’s longevity was placed at risk.

“This year, the challenges have become insuperable due to the tough economical & political environment of the past months, which kept us from raising new funds or finding an acquirer. On top, the insolvency of one of our main business partners worsened the situation significantly and put us over the edge,” Kristina said in her letter.

The company has previously filed for insolvency and while it was given a 3 months time frame to restructure its business, the failure to land a backer now means the end of the road for the firm.

The plans to liquidate the business, according to Kristina, is not affecting its business viability at this time and unlike other global players like Voyager Digital that halted withdrawals, Nuri will allow its customers to withdraw their funds until the stipulated time. The CEO also assured that trading activities will run as usual until the end of November.

In all, she thanked the customers, investors, and workers whose futures remain fairly uncertain at this time.

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Tagged : Bankruptcy / Liquidation / News / NURI

Valkyrie to Liquidate Bitcoin Balance Sheet ETF following Low Customer Demand

by Blockchain NewsOctober 12, 2022

Valkyrie Funds LLC, a digital asset ETF issuer in the US, announced Tuesday that it would liquidate one of its exchange-traded funds (ETFs) that invests in innovative public companies with exposure to Bitcoin.

The digital assets manager said it would shut down the Valkyrie Balance Sheet Opportunities FUND (Nasdaq: VBB) at the end of this month and then be delisted from Nasdaq, where it has traded since December 2021.

Any investor who holds shares of the fund at liquidation will get a cash redemption equal to the net asset value (NAV) of their claims, according to a filing with the Securities and Exchange Commission on Tuesday.

Valkyrie termed the fund’s dissolution as the best course of action, stating that the move was part of an ongoing review of products to ensure the company best meets customer demands.

The firm said the action was taken after thoroughly consulting the company’s Board of Directors. They determined that discontinuing the fund was the best course of action for all those involved.

Customers never showed much interest in Valkyrie’s second ETF, where the largest positions are MicroStrategy (MSTR) and Tesla (TSLA), firms known for holding Bitcoin on their balance sheets. According to the report, net assets under the fund’s management are only about $570,000 as of now.

Investors may trade shares up until the end of the trading day on October 28. Valkyrie said it would satisfy expenses related to the liquidation, the distribution of cash proceeds, and brokerage expenses.

Last December, Valkyrie Balance Sheet Opportunities ETF aimed to invest primarily in companies that invest in, transact in, or have exposure to the Bitcoin asset class on their balance sheets or those that operate within the Bitcoin ecosystem. The fund is the second in a family of Valkyrie’s ETFs designed to enable investors to participate in the digital asset landscape.

The fund’s discontinuation happens when many investors are still interested in Bitcoin investments despite the market downturn. According to a recent survey, more than 80% of financial advisers in the US are being asked about cryptocurrencies, but many struggles to allocate clients effectively to this asset class. With many publicly traded companies in the US already holding Bitcoin and more corporations, entities, and countries increasingly entering the space, investing in these companies provides indirect exposure that many individuals are seeking.

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Tagged : BALANCE SHEET / Bitcoin / Etf / Exchanges / Liquidation / VALKYRIE FUNDS

Ethereum Slips Below $1,350 as Total Liquidation Hit $300 Million in 12 Hours

by Blockchain NewsSeptember 19, 2022

Ethereum (ETH) has not been able to get the right footing since the much-anticipated Merge went live on September 15.

The second-largest cryptocurrency was down by 10.40% in the last 24 hours to hit $1,305 during intraday trading, according to CoinMarketCap.

This price action is being experienced amid high liquidation in the cryptocurrency market. Crypto Reporter Colin Wu or Wu Blockchain pointed out:

“Ethereum fell below $1,300, a 24-hour drop of 10%, and the total liquidation amount in 12 hours reached $300 million. On September 21, the Fed will announce its decision to raise interest rates, and the market is expected to raise interest rates by 75bps.”

Given that interest rate hikes usually have a bearish impact on cryptocurrencies, it remains to be seen how this month’s review by the Federal Reserve (Fed) transpires.

A downward trend is already being experienced in the Ethereum network. Wu added:

“ETC hashrate is 211.11T, down 32.14% from its peak; price is $29.82, down 13% in 24h; ETHW hashrate is 35.48T, down 56.23%, price is $4.66, down 46% in 24h; ETF hashrate is 6.3 TH/s, down 82%, price is $1.22, down 19.8% in 24h.”

The merge changed the consensus mechanism on the ETH network from proof-of-work (PoW) to proof-of-stake (PoS), which is deemed more environmentally friendly and cost effective.

Despite the bearish momentum being experienced, more Ether continues to be staked in the ETH 2.0 deposit contract. Market insight provider Glassnode stated:

“Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 13,801,319 ETH. Previous ATH of 13,799,319 ETH was observed on 18 September 2022.”

Source:Glassnode

Furthermore, transaction volume has been going through the roof after hitting a 4-month high of $264 million.

Source:Glassnode

Crypto analyst Rekt Capital believes that the bullish effects of the Merge will emerge in the long run.

American multinational investment bank Citigroup or Citi had also stipulated that the Merge would slash the overall Ether issuance by 4.2% annually, making it deflationary,

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Tagged : #ETH / Cryptocurrencies / ETHER / Ethereum / Liquidation / Merge / PRICE ACTION

3AC Withdraws $45m from Curve and Convex amid Bankruptcy

by Blockchain NewsSeptember 7, 2022

Three Arrows Capital (3AC) might have declared bankruptcy, but the firm is still conducting a number of robust transactions, according to insights derived from on-chain data.

The company, which was also declared as a liquidated entity by a court in the British Virgin Islands, has unstaked a total of 20,945 staked ether (stETH), worth $33.3 million, from Curve Finance.

The transaction was discovered in part because the crypto analytics platform, Nansen, had already marked the wallet address used for the transaction as belonging to 3AC. Su Zhu ran the firm and also withdrew some funds, including 2,421 wrapped ether (3.98 million), 202.7 wrapped bitcoin ($4 million) and 4,051,367 USDT stablecoins from the Convex Finance protocol as well.

The wallet address attached to Three Arrows Capital that was used to initiate the transaction with Curve is also what is being used to keep hold of the unstaked $45 million. According to the balances in the Wallet at the time of writing, a total of $57.86 million.

Prior to its liquidation and subsequent bankruptcy, 3AC was a highly capitalized firm, serving as both a hedge fund as well as an active investment outfit in the broader Web3.0 ecosystem. The trading platform is known to be the prominent backer of key projects like Fireblocks and Terraform Labs.

The bet on Terraform Labs fueled its downfall, and the cataclysmic impact accounts for what has dragged many other crypto firms like Voyager Digital into the bankruptcy circle.

According to liquidation proceedings, it was discovered that the embattled crypto hedge fund owed as much as $3.5 billion to creditors, one of whom was Blockchain.com.

While Teneo Restructuring is in charge of the liquidation proceedings, some investors, particularly those with small stakes in the firm, can be adjudged as not having a visible edge in reclaiming their funds.

It is not immediately clear what the unstaked funds are meant for, as no comment or reference has been gleaned from 3AC or its representatives.

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Tagged : 3Ac / Convex Finance / Curve Finance / Liquidation / News / TENEO / Three Arrows Capital

Su Zhu Worried About Jail Term Over Liquidators Class Action Settlement – Report

by Blockchain NewsAugust 27, 2022

Su Zhu, a co-founder of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund firm, delivered an affidavit in person in Bangkok, Thailand, on August 19, as reported by Bloomberg on Friday 26th August.

In the affidavit, Zhu accused the firm’s liquidators that they used misleading and inaccurate information in their case associated with Three Arrows and its assets in the High Court of Singapore.

In June, a court in the British Virgin Islands appointed consultancy firm Teneo to liquidate Three Arrows’ assets.

Last month, Three Arrows creditors got an emergency hearing in court where the fund’s liquidators accused the two Three Arrows Capital founders (Su Zhu and Kyle Davies) of failing to cooperate in the liquidation process.

On Monday this week, the Singapore High Court approved requests by advisory firm Teneo to begin the liquidation order in the country. In the court, the liquidators said Zhu and Davies have provided “rather selective and piecemeal disclosures” about the fund’s assets.

In the affidavit, Zhu hit back and accused the liquidators of presenting “inaccurate and misleading” information about the operations, relationships, and timelines associated with Three Arrows Capital and its related entities in their petitions to the Singapore court.

In the affidavit, Zhu identified himself as a director of Three Arrows Capital Pte Ltd. He further said the entity first became a registered fund management firm in Singapore in August 2013 and was eventually licensed on July 31, 2021.

Zhu also described two feeder funds: Three Arrows Fund Ltd registered in the British Virgin Islands, and Three Arrows Fund LP registered in the US state of Delaware. Zhu stated that these entities fed into a master fund (Three Arrows Capital Pte Ltd) named in the affidavit as “the Company.”

The specifics of these representations matter to Zhu as he said the fund’s Singapore entity, Three Arrows Capital Pte Ltd, may not be able to fully comply with the liquidators’ broad demands for information.

In the affidavit, Zhu expressed his fears of “potentially draconian consequences” if Teneo is allowed to exercise its powers to liquidate assets from Three Arrows Capital Pte Ltd.

He also claimed that he and other representatives associated with Three Arrows Capital Pte Ltd could face fines or jail.

Why Did the Firm Collapse?

Three Arrows Capital has been lined up for liquidation several weeks after it was accused of defaulting on multimillion-dollar loans to the crypto firms such as Genesis Trading, Voyager Digital, Blockchain.com, among others.

The problem with the crypto hedge fund firm first started when the market crashed in May. The firm had used borrowed funds to bet big on a number of troubling cryptocurrency projects, including LUNA Terra stablecoin, which crashed to zero when it lost its peg in May, as well as, Axie Infinity, a “play to earn” game that lost almost $700m (£577) to a hack from North Korea last year.

Last month, on July 4^th, Three Arrows Capital filed for Chapter 15 bankruptcy in a federal bankruptcy court in the Southern District of New York in hopes to protect its U.S. assets after a court in the British Virgin Islands ordered the company into liquidation on June 30^th.

After Three Arrows collapsed during the market crash, Zhu and Davies went silent and they were widely thought to be on the run. In the past, they were accused of avoiding questions from creditors and liquidators.

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Tagged : Bankruptcy / Liquidation / News / Su Zhu / Three Arrows Capital

Su Zhu and Kyle Davies Finally Speaks About the Collapse of 3AC

by Blockchain NewsJuly 23, 2022

During an interview with Bloomberg, Su Zhu, and Kyle Davies, the co-founders of Three Arrows Capital (3AC), the troubled hedge fund broke silence on the happenings that they have experienced in the past few weeks.

This was after released court papers claimed that the duo were nowhere to be found and are refusing to cooperate with the liquidation process. No response was gotten from the founders for about five weeks.

Not long after the court’s claim, Su Zhu resurfaced with a tweet displaying an email that his legal team had sent to the liquidators. The email signed by Christopher Anand Daniel who is the Managing Partner of Advocatus Law LLP lashed out at the liquidators suggesting that they were baiting the duo founders. The liquidators were faulting Zhu and Davies for lack of cooperation, and according to Christopher, that was not the case.

Based on Zhu’s response, their once bubbly hedge fund downturned due to their clumsy market speculations which led to soliciting large margin call on loans.

He attested to the fact that those loans should not have been taken in the first place. Both Zhu and Davies described the fall of the hedge fund as a regrettable one per the Bloomberg report. They rebuffed the claim that they had withdrawn huge funds from 3AC before the fall.

3AC’s Collapse Leads to Relocation to Dubai

Meanwhile, many crypto firms had tried to help 3AC and its counterpart who all faced liquidation and bankruptcy.

These firms who acted as creditors to the insolvent firms ended up in debt, Blockchain.com was one of the top creditors of 3AC. Recently, America-based cryptocurrency exchange Coinbase, acknowledged it had not been financially exposed to these bankrupt crypto firms.

Several investors’ loan claims on the hedge fund round up to about $2.8 billion. According to a legal document that was released on Monday, 3AC still owes its creditors and investors up to $1 billion. Coming from Zhu, the hedge fund plans to move its operations to the United Arab Emirates (Dubai). He added that Dubai had to be surveyed before the business finally moves down there.

“Given that we had planned to move the business to Dubai, we have to go there soon to assess whether we move there as originally planned or if the future holds something different for us,”

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Tagged : Liquidation / News / Three Arrows Capital / US BANKRUPTCY