Digital Currency Group Misses $630 Million Debt Payment
DCG missed $630 million Genesis debt payment
Last week, Digital Currency Group (DCG) hit a stumbling block in settling its $630 million debt obligation to Gemini, leaving the crypto lender Genesis to manage its bankruptcy estate. It seems that DCG fell short of meeting their obligations, and there were initial concerns that they could default on the loan.
The Winklevoss-led crypto exchange had previously given DCG 30 days to come up with the funds, but it seems that their efforts fell short. Gemini had accused Genesis of being responsible for the collapse of their interest-bearing lending product, Gemini Earn, which ultimately resulted in the closure of the platform. DCG is a prominent New York venture capital firm, headed by the visionary Barry Silbert, which has backed hundreds of industry-related projects at the seed stage over the years.
Tokenized bonds surpass $200 million
Despite the mounting regulatory challenges faced by crypto projects in the US, investors are flocking to tokenized versions of the nation's debt like moths to a flame.
The tokenized securities market has skyrocketed to a staggering $500M market capitalization, all thanks to a slew of innovative projects that have recently emerged.
Leading the charge is OUSG, a tantalizingly tempting tokenized version of Blackrock's short-term U.S. treasury bond ETF (SHV), which commands over 60% of the market share. Ondo Finance proudly birthed OUSG in January, and the world has never been the same since.
Crypto exchange Hotbit shuts down
Amid a series of unfortunate events, crypto exchange Hotbit has announced that it will be winding down its primary platform. After facing a criminal investigation last August, Hotbit was forced to suspend deposits, withdrawals, and live trades for several weeks as its operational funds were frozen by authorities.
Despite serving a whopping 5 million users for over five years, the exchange has made the difficult decision to halt all CEX operations from May 22, 2023. This follows a previous trading halt due to allegations of misconduct by a former manager, whose specific violations were left undisclosed by the company. Hotbit may have been a proud participant in the crypto show, but it seems that the curtain has finally closed on this particular act.
MetaMask to not withhold crypto for taxes
ConsenSys, the creators of MetaMast, called out "tweets circulating with inaccurate information about ConsenSys' terms of service," asserting for the record that "MetaMask does not collect taxes on crypto transactions and we have not made any changes to our terms to do so."
"The tax section in our terms of service falls under the 'fees and payment' section, and it exclusively pertains to products and paid plans offered by ConsenSys," the company explained. "Legal terminology can be complex, but it's crucial to emphasize that this section does not apply to MetaMask or any other products that don't involve sales tax."
Do Kwon having his bail appealed in Montenegrin court
Montenegro's prosecutors have launched an appeal against the bail conditions of Terra/LUNA co-founder Do Kwon and CFO Han Chang-Joon, calling for stricter measures. The court's decision to grant the duo a release from detention on bail of €400,000 each and impose house arrest has been met with objections. However, Kwon and Han must remain available at all times and respond to court summons regularly. The case has been referred to the High Court in Podgorica, where a final verdict will be reached.
Other breaking news
- Tornado Cash governance attack
- BitDAO proposal approved to merge with Mantle Network
- TORN governance given back to token holders
- New Inferno Drainer phishing scam pilfering crypto
- Bitcoin's trading range narrows
Wrapping up
There we have it folks, the latest Datawallet newsletter. Hotbit officially shuts down, while crypto investors go crazy for tokenized bonds. Do Kwon was again in the news, trying to dispute his bail in Montenegrian courts, while MetaMask denies collecting taxes on crypto transactions. Stay informed and ahead of the game with our daily crypto scoop. See you next week!