The lack of crypto regulation in the United States has long complicating the lives of users and service providers, and now a judge has acknowledged the pain the judiciary feels from its absence too. Chief United States Bankruptcy Judge Martin Glenn, the judge who is leading the Celsius case, said the court will look abroad for guidance in the case. Glenn wrote in an Oct. 17 filing in the Celsius case that: “Many, or pe[r]haps most, cases involving cryptocurrency may raise legal issues for which there are no controlling legal precedents in this Circuit or elsewhere in the United States …

The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) raised an objection in court against Voyager Digital’s disclosure statement, questioning the various methodologies and calculations used to estimate the fair market value of the bankrupt exchange’s crypto assets. In a pleading filed with the United States Bankruptcy Court for the Southern District of New York, the attorneys for the SSB and DOB objected to the order approving the adequacy of Voyager’s amended disclosure statement. Voyager Digital filed for Chapter 11 bankruptcy in New York in July 2022, while proposing a recovery plan for investors. The Texas …

According to a recent Twitter post by 0xngmi, the anonymous creator of decentralized finance (DeFi) project aggregator Defi Llama, the smart contract code for a novel nonfungible tokens (NFT) borrowing and lending protocol dubbed 'LlamaLend" is near completion. The protocol aims to solve the problem of NFT holders needing to obtain liquidity when holding their digital collectibles and primarily targets small NFT collections. The project's LlamaLend GitHub page explains: "If a holder needs liquid money because a good opportunity has appeared, all they can do [now] is just sell their NFTs." As per its GitHub page, LlamaLend will allow users …

Publicly available court documents related to Celsius’ bankruptcy proceedings has revealed data concerning thousands of its customers in a financial disclosure form filed on Oct 5. The document contains over 14,500 pages and while addresses of customers have been redacted, it includes customer names, amounts, types, description and timing of transactions on the platform, along with the U.S. dollar amounts and cryptocurrency type used among other details. There has been a general unease in the crypto community over the publicly available information included in the court documents. Henry de Valence founder of Web3 startup Penumbra Labs told his 9,000 Twitter …

Bitcoin (BTC), along with other cryptocurrencies, has provided people with a venue to earn passive income, making money without any active involvement. One doesn't need to take unnecessary trading risks or spend time reading and analyzing reams of information. While the concept of passive earning isn't new, cryptocurrency has undoubtedly added new dimensions to it. Concepts like compounding interest or reinvesting dividends are also applied in the cryptocurrency market, creating an ecosystem where one can earn passively. Let us discuss various ways to earn passive income with Bitcoin. This article includes interest accounts, lending, mining, trading and liquidity pool. Bitcoin …

In September, cryptocurrency exchange FTX US secured the winning bid for the assets of embattled crypto brokerage firm Voyager Digital with a bid of approximately $1.4 billion. The bid was made up of the fair market value of Voyager’s crypto holdings “at a to-be-determined date in the future.” According to Voyager, at current market prices, the fair value of its holdings was estimated around $1.3 billion, and the deal included an “additional consideration,” estimated to be worth approximately $111 million. Since then, new details on the case have emerged, with court filings showing that the cash paid for Voyager Digital …

Bankruptcy or insolvency is not in “Nexo’s reality” according to the crypto lending platform’s co-founder and managing partner, Kalin Metodiev. In an Ask Me Anything (AMA) video posted via YouTube on Oct. 4, founders and managing partners Metodiev and Antoni Trenchev addressed community questions and recent FUD-related rumors that Nexo could soon face insolvency issues. Responding to a question about the insolvency/bankruptcy rumors and whether Nexo will be the “next Celsius and Voyager,” Metodiev explicitly stated that: “Insolvency, bankruptcy are nowhere in Nexo’s reality, and we believe, we hope, we aspire, [and] we[‘re] work[ing] very hard to deliver a very …

Celsius Network founder and former CEO Alex Mashinsky allegedly withdrew $10 million from the crypto lending platform just weeks before the company froze customer funds and declared bankruptcy. The withdrawal was cited by sources from the Financial Times who said Mashinsky withdrew the funds in “mid to late May” prior to the Jun. 12 pause on all withdraws. Celsius was a popular crypto-lending platform with 1.7 million customers and $25 billion in assets under management but the prevailing poor crypto market conditions eventually led the company to a $2.85 billion gap in its balance sheet. This led Celsius to pause …

Crypto lending firm Nexo (NEXO) risks losing half of its valuation by the end of 2022 as doubts about its potential insolvency grow in the market. Is Nexo too centralized? For the unversed: eight U.S. states filed a cease-and-desist order against Nexo on Sep. 26, alleging that the firm offers unregistered securities to investors without alerting them about the risks of the financial products. In particular, the regulators in the state of Kentucky accused Nexo of being insolvent, noting that without its namesake native token, NEXO, the firm's "liabilities would exceed its assets." As of July 31, Nexo had 959,089,286 …

APR vs. APY: Which is better? The APY provides a clear idea of an account’s earning potential. The APR shows what will be owed. Both are calculated over a single year, which provides a more accurate picture than calculating the interest rate alone. Because the APR is calculated at an annual rate, it can be more advantageous for borrowers seeking the best rates, instead of investing in crypto assets and hoping for a return. However, because the APY is based on an annualized rate that includes compounding earnings, it's more beneficial for investing crypto assets—it provides a more accurate representation …

Kalin Metodiev, the co-founder and managing partner of crypto lender Nexo stated his firm was “surprised” by the way in which eight state regulators publicly took action against it for securities violations. Earlier this week the California Department of Financial Protection & Innovation (DFPI) filed a desist and refrain order against Nexo’s Earn Interest Product, claiming the company was offering a security product that had not been cleared by the government for sale in the form of an investment contract. The DFPI also stated that it was joining regulators from seven other states in taking action against the company, including …

Maple Finance co-founder and CEO Sid Powell says that transparency has been the saving grace of decentralized finance (DeFi) amid the prolonged crypto market slump. Speaking to Cointelegraph on the sidelines of Converge22 conference in San Francisco, Powell noted that throughout the crypto winter, DeFi has continued to operate as intended while centralized finance (CeFi) has become “pretty inactive.” Powell suggested that during the market crash, CeFi lenders hadn't properly "battle-tested" and weren’t “prepared to liquidate clients," wanting to maintain client relationships. “As the price of Bitcoin was tumbling, they didn’t want to be sending out margin call letters or …