IRS files claims against FTX, Tether shows strong Q1 2023 results, Robinhood's crypto custody booms, and more. Stay ahead of crypto news with us.
IRS Files $43 Billion FTX Claim & Tether's $1.5 Billion Profit 💵

IRS Files $43 Billion FTX Claim & Tether's $1.5 Billion Profit 💵

IRS files claims against FTX, Tether shows strong Q1 2023 results, Robinhood's crypto custody booms, and more. Stay ahead of crypto news with us.

Last update:
May 12, 2023
| Issue

Hello crypto enthusiasts, we’re nearing the end of the work week, and we are bringing you yet another Datawallet newsletter. As usual, we cover the ever-changing world of crypto for investors of all levels of knowledge. So sit back and enjoy the content we’re bringing you today.

Today’s drop will cover these key daily news items:

  • IRS has filed $43.8 billion in claims in FTX’s ongoing bankruptcy
  • Tether Q1 2023 Attestation Report: $1.48 Billion in Net Profit
  • Robinhood’s crypto custody hits $11.5 billion in Q1
  • Marathon Digital Holdings hit with another SEC subpoena
  • Coinbase apologizes for calling Pepecoin alt-right

IRS has filed $43.8 billion in claims in FTX’s ongoing bankruptcy

The IRS of the United States is swinging a heavy legal hammer, seeking to claim almost $44 billion from the defunct cryptocurrency exchange FTX and its associated companies. The tax authority has unleashed a flurry of 45 claims against FTX, including the parent company Ledger Holdings and West Realm Shires (FTX.US), as well as the popular Blockfolio platform. Among the mammoth claims are a staggering $20.4 billion against Alameda Research LLC and two totaling $9.5 billion against Alameda Research Holdings Inc. 

The IRS has filed these claims under the ominous banner of "Admin Priority", which could very well give them priority over other creditors in the bankruptcy process. Details from the bankruptcy documents reveal that the IRS is seeking over $20 billion in partnership taxes alone from Alameda Research LLC, with the rest made up of unpaid payroll and income taxes. This is one legal storm that FTX and its associates would do well to brace themselves for.

Tether Q1 2023 attestation report: $1.48 billion in net profit

In an impressive display of financial fortitude, Tether Holdings Limited has just released its Q1 2023 assurance opinion, completed by the reputable global accounting firm, BDO Italia. This attestation reaffirms the accuracy of Tether's Consolidated Reserves Report (CRR), which meticulously breaks down the group's assets as of March 31, 2023. Excitingly, Tether's CRR now includes additional categories to offer even greater transparency, including Physical gold, Overnight Repo, Corporate Bonds, and Bitcoin ownership, all reported separately.

For Tether, Q1 2023 was nothing short of a triumph. With a net profit of $1.48B, Tether's reserves have never been stronger, reaching an all-time high of $2.44B. Not only that, but the token is in circulation has increased by a remarkable 20%, indicating that Tether's customers trust the platform implicitly.

Closing the quarter with consolidated total assets of $81.8B, Tether's reserves are primarily invested in US Treasury Bills. However, Tether has been taking steps to reduce its reliance on pure bank deposits as a liquidity source, instead leveraging the Repo market to ensure even higher standards of user protection.

All in all, Tether's first quarter of 2023 was a resounding success. With such impressive financial stability and forward-thinking practices, the future looks bright indeed for Tether.

Robinhood’s crypto custody hits $11.5 billion in Q1

Robinhood's crypto business has emerged from the shadows and is now showing promising signs of a remarkable turnaround. As per their first-quarter earnings report, the company's assets under custody rose to an impressive $78 billion, fueled by surging market valuations of crypto assets and growth stocks. 

With a colossal $11.5 billion in crypto assets custodied for clients by the end of Q1, Robinhood has witnessed a notable increase from its $8.4 billion valuation at the end of 2022. Though there was a slight dip in crypto transaction revenue, falling by 1%, Robinhood remains optimistic about capturing a larger market share and retaining competitive pricing.

Marathon Digital Holdings hit with another SEC subpoena

Marathon Digital Holdings, a leading Bitcoin mining firm, has been served with a subpoena from the U.S. Securities and Exchange Commission (SEC) for alleged violations of securities laws. In a filing on Wednesday, Marathon confirmed that it had received an additional subpoena on April 10, 2023, pertaining to transactions with related parties. 

The SEC is reportedly investigating whether the company violated federal securities laws and Marathon is fully cooperating with the investigation. The subpoena is related to Marathon's data center facility in Hardin, Montana. This is the second subpoena the company has received from the SEC since November 2021.

Coinbase apologizes for calling Pepe an alt-right hate symbol

Coinbase's Chief Legal Officer, Paul Grewal, issued a public apology following the company's controversial statement that labeled Pepe the Frog, a popular internet meme, as an alt-right hate symbol. The statement was part of an overview of the Pepe-themed cryptocurrency, which was launched in April and already boasts a market cap of $658 million. However, the description of Pepe the Frog as a hate symbol ignited a firestorm of backlash from the crypto community, prompting the trending hashtag #deletecoinbase on Twitter.

Critics pointed out that while the meme has been misused by extremist groups, its majority use remains non-bigoted, according to the Anti-Defamation League. Amid the furor, other crypto exchanges including Binance and Gemini have listed the Pepe token for trading, though Coinbase's plans remain unclear.

Other breaking news

Wrapping Up

There we go, folks another day, another Datawallet newsletter. We’ve seen BTC cross $30K for the first time since June of last year, while Robinhood’s crypto custody explodes in Q1. Meanwhile, IRS is looking to pile in on FTX’s bankruptcy woes, while the popular crypto mining company was hit with another subpoena. Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow!