Paxos ‘disagrees’ with SEC amid $700m BUSD exodus, Warren amps up crypto battle, Citadel Securities’ Silvergate stake

Paxos

Stablecoin issuer Paxos denied any wrongdoing on Monday, saying it “disagrees” with the Securities and Exchange Commission’s legal warning. Paxos, which mints the Binance-branded stablecoin BUSD, saw over $700 million in BUSD burned over the past 48 hours as stablecoin holders fled into other assets such as USDT and USDC. The enforcement action is predicated on BUSD being an unregistered security, a designation championed by the SEC but under contention by many crypto figures and companies. The SEC’s Paxos crackdown is only the latest in a long string of similar enforcement actions.

George Soros bets on crypto

Billionaire investor George Soros’ hedge fund Soros Fund Management is reported to have made considerable crypto bets in late 2022, Coindesk reported. The fund’s acquisitions consist of put and call options, as well as financial instruments called convertible debentures, which are long-term debt holdings that convert to stock upon maturation. Among the companies Soros purchased holdings in are Bitcoin giant MicroStrategy, FTX-linked Silvergate Bank and crypto mining company Marathon Digital Holdings.

Citadel discloses stake in Silvergate

Speaking of Silvergate, American market maker Citadel Securities acquired 5.5% of the ailing bank, according to a recent SEC filing. The position comes at a time when Silvergate’s future is uncertain. Dealings with collapsed crypto empire FTX have brought the bank under tight scrutiny as the bankrupt exchange’s deposits make up almost 10% of the bank’s reserves.

Siemens issues euro-dominated blockchain bond on Polygon

German company Siemens has announced that it has issued a €60 million digital bond, which is underpinned on a public blockchain. The bond has a one year maturity period, and can be sold directly to investors, bypassing the need for a bank as an intermediary. The company claims the product reflects a much faster, paper-free direction for payment transactions. In similar institutional news, Credit Suisse and Deutsche Bank both participated in Web3 infrastructure company Taurus’ $65 million funding round this week.

UK Regulator issues cease-and-desist to crypto atm operators

In regulatory news, the UK’s Financial Conduct Authority is making good on its March 2022 promise to shut down illegal crypto ATMs operating within the country. Yorkshire police issued cease-and-desist letters to some 27 operators, the BBC reported. At press time, the FCA does not recognise any crypto businesses that operate ATMs in the UK, making all devices within the country illegal.

Elizabeth Warren’s crypto crusade continues

Crypto sceptic US Senator Elizabeth Warren plans to reintroduce a bill intended to tighten anti-money laundering legislation for digital assets. Citing drug traffickers, North Korean state hackers and ransomware attackers, Warren’s speech at a Senate Banking Committee outlined the need for crypto companies to be regulated like regular financial institutions. Warren has a long history of bashing crypto assets. For instance, she called upon the US Treasury in September to “use every tool at their disposal” to rein in the crypto market.

Andrew Tate’s seized Bitcoin losses revealed

A spokesperson for Andrew Tate, who has been in custody in Romania facing human trafficking and rape charges since December 2022, revealed how much Bitcoin was seized from him by Romanian authorities. Tate denies the charges. Before him being detained by Romanian authorities, Tate bragged about making close to $12 million in crypto gains and regularly showed off sports cars, mansions and luxury apparel. Between Tate and his brother, Romanian authorities have seized 21 Bitcoin, worth around $450,000.

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