Cryptocurrency lender Hodlnaut, which stopped withdrawing customer funds due to financial problems, could suffer additional losses due to the upcoming Ethereum update. Hodlnaut’s new interim management team disclosed this in a document.
According to the audit, most of the assets are hosted on decentralized finance (DeFi) platforms. Which ones, it did not disclose. However, the new management admits that Ethereum’s move to a Proof-of-Stake (Proof-of-Stake) algorithm could lead to increased volatility. Such a spike could negatively impact open positions, effectively leading to their liquidation.
One solution Hodlnaut called the withdrawal of assets from smart contracts, but acknowledged that it could lead to “material losses.” The company did not specify the amount of assets placed on DeFi-protocols.
As a reminder, Hodlnaut stopped services to customers in early August, citing a need to “stabilize liquidity.” The company is still unable to give an exact date for resuming cryptocurrency withdrawals. Since Hodlnaut withdrawal fees are very low, users are baffled by what is happening.
In late August, a court ruled that Hodlnaut will now be managed by interim executives from consulting firm EY Corporate Advisors. The company, meanwhile, insisted that an employee of another consulting firm, Kairos Corporate Advisory, take over management of the firm.
Later it became known that law enforcement authorities in Singapore demanded from Hodlnaut $127 million in USDTand USDC. This was reported in a Hodlnaut post on the official website, but the material was later removed for unknown reasons. In addition to the law enforcement claims, Hodlnaut is also facing a $200 million financial loss on a corporate account.
Previously, we reported that experts had named the exact timeline for the PoS update to Ethereum.
Korea begins blocking bitcoin holdings of Terra founder
The South Korean prosecutor’s office appealed to local cryptocurrency exchanges to block the assets belonging to Terra founder Do Kwon. Bloomberg writes about it citing law enforcement officials.
The prosecutor’s office sent demands to cryptocurrency exchanges KuCoin and OKX to freeze a total of 3,313 BTC worth about $67 million, which are owned by Kwon through Luna Foundation Guard. Representatives of KuCoinand OKX at the time of writing had not officially commented on the reports about the blocking of Kwon’s assets.
According to Bloomberg, citing research firm CryptoQuant, the LFG wallet address was created on September 15. After its creation, a total of 3,310 BTC were moved to KuCoin and OKX. Meanwhile, back on September 14, the South Korean prosecutor’s office announced an arrest warrant for Terra coin.
Meanwhile, Do Kwon continues to assure the cryptocurrency community via Twitter that he is not hiding from law enforcement. Moreover, the founder of Terra even questioned whether he was wanted by Interpol. He noted that he still can’t find himself on the Interpol wanted list.
Earlier we reported that the head of Celsius Network, Alex Mashinsky, had resigned.
Revolut and cryptocurrency news: Revolut received a license from the UK regulator for cryptocurrency services
Fintech broker Revolut can now provide cryptocurrency services in the UK thanks to a license from the Financial Conduct Authority (FCA). This is reported on the website of the regulator. Revolut and cryptocurrency were not previously linked.
In fact, the broker received approval from the regulator back on Monday, September 26, but it has become known only now. Before the license, Revolut provided cryptocurrency services through a temporary permit from the FCA. In addition to Revolut, CEX.IO, Copper Technologies, GlobalBlock and Moneybrain also provided crypto services on a temporary basis.
Revolut has long been exploring the expansion of cryptocurrency-related services. According to Revolut CEO Nikolai Storonsky, the company has been exploring options to introduce new services like Revolut cryptocurrency wallet. Revolut was also looking at integrating cryptocurrency stacking. However, it remains unclear whether the broker still plans to provide such services.
Earlier we reported that the head of FTX wants to buy the assets of the bankrupt Celsius Network.
U.S. exchange regulator fines Tether auditor company $1.5 million
Tether auditor company, Friedman LLP, was fined $1.5 million for improper services from 2017 to 2020. This was reported in a press release from the U.S. Securities and Exchange Commission (SEC).
According to the exchange regulator, the Tether auditing company didn’t properly develop audit procedures in its work for the iFresh product network. The company also didn’t exercise the necessary due diligence in auditing another unnamed company. Although the press release does not explicitly identify Tether, the issuer of the USDTstablecoin, as Tether, Friedman’s firm was Tether’s auditor from just 2017 to 2018.
Tether full audit
Earlier, a New York County court required Tether to disclose the USDT Stablecoin’s collateral and prove the assets linkage to the U.S. dollar. According to the court order, Tether is required to provide the company’s financials, income statements, cash flow statements, and so on. However, the time frame in which Tether must provide the statements is not specified.
The lawsuit is part of a legal battle between investors and Tether’s parent company, iFinex. The plaintiffs believe that Tether manipulated the cryptocurrency market by issuing unsecured USDT with the intention of artificially inflating cryptocurrency prices.
Earlier we reported that Vitalik Buterin announced the release of his book.
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