Bitcoin defies banking bloodbath
Amidst the banking bloodbath, Bitcoin’s price skyrocketed to $28,000 on Sunday – its highest levels since June.
The news comes as the banking industry is still reeling from the collapses of US-based Silicon Valley Bank, Signature Bank and Silvergate Bank as well as UBS’ takeover of troubled lender Credit Suisse over the weekend.
Bitcoin’s rally seemingly coincided with the US Federal Reserve on Sunday teaming up with central banks around the world to ensure a steady flow of US dollar.
By backstopping global dollar liquidity, the US central bank reduced the risk for a worldwide dash for cash and, arguably, simultaneously whetted the appetite for risk assets, such as Bitcoin.
The cryptocurrency’s jump has caused the crypto community to erupt in paroxysms about this being the start of another bull market.
At the time of writing, Bitcoin is trading at $28,200.
Banking stocks fell on Monday amidst concerns that the banking crisis is not over.
NOW READ: Bank meltdown crushes crypto regulation hopes: ‘Crypto in the US is dead’
Dollar liquidity swap lines opened up on March 19th.— David Belle (@davidbelle_) May 8, 2020
BTC kicked off its rally from that point.
Btw, there was hardly any correlation with EurodollR futures, it was totally spurious, but good to get some cogs turning 😂 https://t.co/NV5RKCncGl pic.twitter.com/o0bbOJJpFQ
Binance responds to US senators, omits financials
Crypto exchange Binance responded to criticism from a group of US senators late last week in a 14-page letter.
Senators, including Massachusetts’ Elizabeth Warren, had demanded Binance answer to what lawmakers allege is purposeful evasion of regulation.
The lawmakers’ letter had said that what little information about Binance’s finances is “available to the public suggests that the exchange is a hotbed of illegal financial activity.”
They had demanded a response by March 16.
In its answer, Binance lamented perceived misconceptions about its business dealings, though it failed to answer several questions regarding its finances.
The exchange also maintained that Binance and its US arms were “separate entities – contrary to suggestions in public reporting.”
FDIC enlists Bancorp subsidiary Flagstar to honour Signature deposits
The Federal Insurance Deposit Corporation said Sunday that Signature Bank’s non-crypto related deposits will be transferred to Bancorp subsidiary Flagstar Bancorp, effective Monday.
The bid by Flagstar omitted $4 billion of digital banking deposits, which the FDIC said it will honour directly.
The announcement came after the cryptoverse last week ran awash with rumours that a strong anti-crypto sentiment underpinned Signature’s restructuring, barring bidders from engaging in crypto businesses.
The FDIC has denied the rumours.
NOW READ: Europe’s MiCA offers crypto utopia for Americans in a banking crisis. But it’s not that simple
Euler Finance exploiter returns $5.4m
The Euler Finance exploiter returned 3,000 ether, worth $5.4 million, to the protocol on Saturday.
While a far cry from the $197 million the attacker stole in a flash-loan attack last Monday, crypto netizens speculate that the transaction may suggest Euler and the hacker have reached a deal.
Earlier in the week, Euler had offered the hacker that they could keep 10% of the stolen funds as a bounty if the remaining 90% were returned to the protocol.
Last week, the attacker had also sent $170,000 to a wallet associated with North Korean hacker group Lazarus and $130,000 to a victim who had begged to have his assets returned to him.
The Euler attack was the biggest crypto hack to date in 2023.
NOW READ: BlockSec stops $5m from being stolen in failed ParaSpace hack
Tron founder Justin Sun offered to buy Credit Suisse before UBS swooped in
Tron founder Justin Sun publicly offered to purchase ailing Swiss bank Credit Suisse for $1.5 billion on Sunday, just hours before a government-backed cut price deal saw UBS buy the embattled bank for $3.23 billion.
The bank was worth around $80 billion at its peak.
Before being bought, Credit Suisse faced a failure similar to those experienced by American banks Silicon Valley Bank and Signature Bank earlier in March.
Factors such as rising global interest rates have contributed to the instability in the financial sector.
Sun’s public offer to acquire an ailing company is not his first – he offered to purchase assets in Barry Silbert’s Digital Currency Group in January.
.@UBS's bid for @CreditSuisse falls short. I would like to propose my own offer of $1.5 billion to acquire Credit Suisse and integrate it into the Web3.0 world. Switzerland has been one of the most crypto-friendly countries in the world.— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 19, 2023
Venezuela’s crypto honcho dismissed, arrested for alleged embezzlement scheme
Venezuelan president Nicolas Maduro removed Joselit Ramirez – the country’s top crypto authority – from his post on Friday and is under investigation for an alleged oil theft scheme.
Ramirez was later placed under arrest by the National Anti-Corruption Police, as part of a crackdown on officials involved in embezzlement.
Venezuela’s National Superintendence of Cryptocurrencies is responsible for transactions of the nation’s cryptocurrency, Petro, which is supported by natural resource reserves.
More web3 news from around the web...
Silicon Valley Bank’s former parent company files for bankruptcy – CoinDesk
How realistic is former Coinbase CTO’s $2 million Bitcoin wager on US hyperinflation? – Decrypt
Date for FTX’s auction of LedgerX revised for third time – The Block