“BlockFi’s announcement, made on November 10, 2022, from its Twitter account @BlockFi, acknowledged that it cannot ‘operate business as usual’ given the ‘lack of clarity on the status of FTX.com, FTX US and Alameda.’ The DFPI is investigating BlockFi’s compliance with the laws within the Commissioner’s jurisdiction, including the California Financing Law. The DFPI is also investigating FTX,” DFPI said. Source
Another reason the Thiel model simply makes no sense for retail finance is that it is structurally impossible to build the kind of “moat” that can, at the very least, keep a crappy business like Uber limping along. A huge element of finance, certainly for retail depositors but also more generally, is that you want your deposits to be as liquid as possible. To attract deposits in the first place, customers must be convinced it will be easy to withdraw … and potentially deposit their money elsewhere. This makes banking…
It’s been another day of watching the ripples of contagion spread through the crypto market. With Three Arrows Capital being ordered into liquidation by a British court, details have also emerged today of BlockFi liquidating a $1B loan to 3AC, and the fallout from the insolvency was partly to blame for lending firm and market maker Genesis Trading facing losses of “a few hundred million dollars.” Withdrawals remain suspended at the possibly insolvent lending and borrowing platform Celsius, which was revealed to have had a highly risky 19 to 1…
In an interview with Cointelegraph reporter Joe Hall last Tuesday, David Olsson, global head of institutional distribution at BlockFi, shared his insight on the state of institutional adoption of cryptocurrencies. BlockFi is a financial services company that offers retail wealth management products, such as crypto-backed loans, interest accounts, Bitcoin (BTC) rewards credit cards, etc. Meanwhile, for institutional investors, BlockFi’s proprietary platform provides financing for capital efficiency, the ability to borrow coins for hedging and shorting, and institutional-grade trading infrastructure. When asked about any exciting trends among institutional clients adopting crypto,…
BlockFi has maintained that its product is not a security. But securities regulators appear to disagree. Earlier this year, a bevy of state-level agencies opened investigations into BlockFi, which would make the SEC only the latest force to give a look. Source
Crypto lender BlockFi has launched its bitcoin trust with an annual fee that falls .25% below what industry-leader Grayscale Bitcoin Trust (GBTC) charges investors. With a 1.75% management fee, the fund started taking subscriptions last Friday and the fund has nearly $30 million in assets under management, according to its website. Roughly six to 12 months from now, the trust should be available on over-the-counter markets making it tradable through brokerage accounts, Prince said. The company’s joins Bitwise and Osprey Funds in competing with Grayscale’s dominance in the bitcoin trust…
New research shows certain wallets are vulnerable to a quasi double-spending attack, a federal appeals court effectively said blockchain data is not protected under the Fourth Amendment and more. Here’s the story: You’re reading Blockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why they’re significant. You can subscribe to this and all of CoinDesk’s newsletters here. Law of the LandThe Senate Banking Committee plans to introduce legislation this week to study virtual currency’s role in illicit online activity. “Although the use and trading of virtual currencies…
The crypto lending provider BlockFi reported on May 19 to have suffered a data breach that may put some of its clients in physical danger. According to its incident report, some of the company’s client data was breached through a SIM swap attack performed on one of its employees. The attackers successfully stole the email account and phone number used for the employees account verification procedure, which allowed them to access BlockFi’s records. SIM-swapping attacks are the result of network operator vulnerabilities, and are usually performed through co-conspirators with access…
BlockFi To Pay 6.2% APR In Bitcoin And Ethereum Forbes reports that BlockFi, a company that raised $52.5 million from investors like Novogratz’s Galaxy Digital last July, has launched a game-changing product. BlockFi has reportedly given clients across the globe the ability to make up to 6.2% annual interest on Bitcoin (BTC) and Ethereum deposits. This “interest account” offering will go alongside BlockFi’s loan offering, which allows users to borrow more than $2,000 at a 4.5% interest rate if they deposit collateral denominated in three leading cryptocurrencies. In an announcement, Zac…
BlockFi To Pay 6.2% APR In Bitcoin And Ethereum Forbes reports that BlockFi, a company that raised $52.5 million from investors like Novogratz’s Galaxy Digital last July, has launched a game-changing product. BlockFi has reportedly given clients across the globe the ability to make up to 6.2% annual interest on Bitcoin (BTC) and Ethereum deposits. This “interest account” offering will go alongside BlockFi’s loan offering, which allows users to borrow more than $2,000 at a 4.5% interest rate if they deposit collateral denominated in three leading cryptocurrencies. In an announcement, Zac…