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DCG reports $1.1bn loss, IMF hints at crypto ban, French authorities make Platypus hack arrests

DCG reports $1.1bn loss, IMF hints at crypto ban, French authorities make Platypus hack arrests
IMF managing director Kristalina Georgieva, left, hints at crypto ban while Binance CEO Changpeng Zhao, right, sees Coinbase delist BUSD.

DCG reports $1.1bn losses

Digital Currency Group reported a loss of $1.1 billion in 2022. The crypto conglomerate blamed bearish market conditions, the Three Arrows Capital collapse, and the ongoing restructuring of its lending platform Genesis for the downturn. In its fourth-quarter investor call, DCG reported revenue as “consistent with the sector’s 75% to 85% decline.” As of December 31, DCG held total assets of $5.3 billion. Genesis was caught in the fallout of the collapse of crypto hedge fund Three Arrows Capital in June and then halted withdrawals in November 2022 following the FTX scandal.

Voyager agrees to reserve $445m for Alameda Research lawsuit

Bankrupt exchange Voyager has agreed to reserve $445 million to pay debtor Alameda Research. Voyager was sued by Alamada Research, a sister company of defunct exchange FTX, to ensure the company received a chunk of Voyager’s liquidation proceedings. Voyager filed for bankruptcy in July following the collapse of Three Arrows Capital and ended up owing the crypto hedge fund $650 million.

On-chain data analysis saw Voyager move around $154 million in USDC in February. To add to the chaos, Voyager is in the middle of a potential $1 billion purchase deal by Binance.US, but regulators have warned that the $445 million owed to Alameda Research may make the deal untenable.

Coinbase delists BUSD

Crypto giant Coinbase has announced it will suspend trading of Binance USD (BUSD) in March, saying the asset no longer meets the company’s listing standards. BUSD, a Binance-branded stablecoin previously issued by Paxos, became the target of a regulatory push by the Securities Exchange Commission earlier this month. The SEC ordered Paxos to cease minting BUSD by February 21, and market sentiment has been low regarding the coin’s future. Nonetheless, the coin’s peg to the US dollar has thus far recovered to around the $1 range.

NOW READ: SEC’s Paxos fallout drives unexpected gains in centralised stablecoins

IMF not taking crypto ban ‘off the table’

The International Monetary Fund’s managing director Kristalina Georgieva told reporters on Sunday that the fund is taking a hardline stance on crypto assets. Georgieva stated that the IMF is “very much in favour” of ramping up regulations. She also said that if regulation does not come soon enough, a total ban “should not be taken off the table.” The IMF executive’s sentiment echoed one found in a recent paper published during the G20 conference in India, in which finance ministers and bank governors from around the world proposed heightened regulations for digital assets.

UK regulator to propose rules on digital assets

UK bank regulator the Prudential Regulatory Authority plans to propose rules regarding the issuance and custody of digital assets, according to a Monday speech. Executive director of prudential policy, Vicky Saporta, emphasised a “dynamic digital regulatory agenda,” touching on AI technology before teasing “rules about issuing and holding digital assets.” The speech also referred to a departure from “EU rules,” suggesting the UK’s approach to regulating digital assets may differ from the EU’s upcoming MiCA legislation.

NOW READ: US sends team to Brussels to study EU’s landmark crypto law amid SEC crackdown

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Suspects arrested in France for Platypus attack

On Saturday, French authorities arrested two people alleged to be involved with the recent $9.1 million Platypus flash loan exploit. Officials tweeted details of the arrest, informing the public of a $220,000 crypto seizure during the operation. Decentralised finance protocol Platypus has recovered over $2.4 million of the stolen funds to date, and pledged to return at least 63% of user losses as soon as possible.

Dookey Dash ‘Golden Key’ NFT sells for $1.6m

In the strangest story of the week – including the “crypto mine hidden in a high school crawlspace” piece – Twitch streamer Kyle Jackson, aka. Mongraal, has sold a one-of-a-kind Dookey Dash “Golden Key” NFT for $1.6 million. Jackson won the NFT for achieving the highest score in Dookie Dash, a Web3 game created by Yuga Labs, of Bored Ape Yacht Club fame. The purpose of the key NFT has been hinted at by Yuga Labs and will be revealed on March 8, but remains enough of a mystery for buyer Adam Weitsman to shell out $1.6 million to have the privilege of finding out.

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