🦎🚀 Babel tries to make it all back, with a little HOPE! 👼

Tuesday, March 7, 2023

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The FTX drama continues…

Affiliate of failed cryptocurrency exchange FTX, Alameda Research, has filed a lawsuit against asset manager Grayscale Investments for over $9 billion of funds held in Bitcoin Trust Shares.

FTX's current Chief Executive Officer and Chief Restructuring Officer, John J. Ray III, issued a statement that Grayscale had an "improper redemption ban" that was preventing customers from retrieving their funds.

Following FTX's spectacular crash last November, hundreds of millions of dollars in client cash is now missing.

In today's news, Dapper halts withdrawals via ACH, Babel Finance pitches token issuance to resolve financial distress, and MyAlgo urges users to withdraw now.

Read on!

Breakdown of Crypto Funding by Sectors

Funding shifted from CeFi to DeFi last year. The amount raised by DeFi projects jumped 190% despite the decrease in overall funding, while CeFi raised 73% less.

Perhaps a sign of the industry progressing towards more on-chain participation?

Find out how much other sectors raised

24h Hot Searches Worldwide

ZigZag (+1.9%)
Access Protocol (+96.1%)
Radiant Capital (+3.5%)
Aavegotchi (+4.0%)
Aura Finance (+16.0%)
Velodrome Finance (-2.1%)
Pendle (+25.6%)

Is history repeating itself? We compare Bitcoin cycles and how they've evolved over time. 👉

Tap here to watch!

Dapper Puts a Damper on ACH Withdrawals

NFT studio Dapper Labs issued a statement that the company would no longer process payments through Automated Clearing House (ACH), citing its payment partner Circle removing its functionality.

The announcement follows events surrounding Silvergate Bank; the crypto-friendly lender faces strong financial headwinds and regulatory scrutiny.

The regulatory crackdown saw several of Silvergate's clients parting ways from the bank and stopping its ACH services, such as Coinbase, Circle, Paxos, and Crypto.com, among others.

CoinDesk

Another Debt Token?

Distressed crypto broker Babel Finance is assessing the avenue of issuing DeFi tokens to resolve the company's financial woes.

The Hong Kong-based crypto lending platform coins the restructuring initiative as "Babel Recovery Coins" with a dual token ecosystem; a fully reserved stablecoin HOPE and another token called Light Token.

The stablecoin, which will be initially backed by BTC and ETH, will be used to repay the firm's creditors.

Decrypt

Attack on Algorand

Algorand-based decentralized exchange Algodex has suffered security breaches, the event follows a similar hack suffered by the ecosystem's wallet provider MyAlgo last week.

Algodex revealed a malicious actor infiltrated a company's wallet, which was tied to Algodex's liquidity rewards program, and was responsible for providing extra liquidity to the ALGX token.

Meanwhile, MyAlgo has renewed warnings for users to withdraw their funds as soon as possible.

Cointelegraph

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