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Robinhood buys Celsius at a $97.5 million discount

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Robinhood buys Celsius

Robinhood buys Celsius? The U.S. fintech broker reduced the price tag of British crypto startup Ziglu by 57.5%, hitting the project’s investors. Robinhood achieved a reduction in the price tag of British cryptocurrency startup Ziglu from $170 million to $72.5 million, AltFi writes, citing a letter from Ziglu head Mark Hipperson to the company’s investors.

According to him, the price reduction is acceptable, because without capital from Robinhood, the company would be in “extremely difficult market conditions. According to AltFi, the reason for changing the terms of the deal could be the volatility in the market and the fact that Ziglu is listed as a creditor of the bankrupt giant Celsius Network. Exactly how much Celsius owes Ziglu is unclear. Hipperson added that the British crypto startup’s board has already approved the new price tag.

Robinhood and Celsius group deal

That said, as the media found out, the agreement could significantly hit Ziglu investors who invested in the company in September 2020 and November 2021. While in 2020 a share of Ziglu was valued at £34, in 2021 it was valued at £48.3. However, at the end of the sale, Ziglu’s share price has fallen to £28.29. For the earliest Ziglu investors, the Robinhood deal will bring an unrealized loss of 17%, but those who invested in 2021 will face a loss of 41%.

According to Sifted, investors were unhappy with the terms of the deal. For example, an unnamed Ziglu contributor said that the executives of the British startup “should be ashamed” for accepting the conditions put forward, while another called the Ziglu board’s agreement “disgusting behavior.”

Robinhood first announced plans to buy Ziglu in April 2022. At the time, the U.S. fintech giant said the takeover would help expand services not only in the UK, but also in the European market.

Earlier we reported that the head of Coinbase promised not to censor Ethereum.

Cryptocurrency

Korea begins blocking bitcoin holdings of Terra founder

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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.

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Cryptocurrency

Revolut and cryptocurrency news: Revolut received a license from the UK regulator for cryptocurrency services

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Revolut cryptocurrency wallet

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.

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U.S. exchange regulator fines Tether auditor company $1.5 million

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Tether full audit

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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