Last Updated : March 20, 2023 / 08:42 AM IST
Cryptocurrency roundup for March 20: Bitcoin at $28000, Flagstar Bancorp to assume non-crypto deposits of signature Bridge Bank, Tron Founder Justin Sun proposes transforming Credit Suisse, DefiLlama contributors in conflict and more
A daily round-up of the most interesting articles on cryptocurrencies like Bitcoin, Ethereum and Tether to help jump-start the day.
Flagstar Bancorp to Assume Non-Crypto Deposits of Signature Bridge Bank, Excluding Digital Banking Business
On Monday, Flagstar Bancorp, N.A., which is a subsidiary of New York Community Bancorp, will be assuming the non-crypto related deposits of the former Signature Bank (now Signature Bridge Bank) in accordance with a purchase and assumption agreement, as stated in a press release by the FDIC on Sunday (US time).
> Under this agreement, depositors of Signature Bridge Bank, excluding those associated with the digital banking business, will automatically become depositors of Flagstar and will be insured by the FDIC up to the insurance limit.
> It is important to note that Flagstar Bank's acquisition does not include $4 billion worth of deposits related to the former Signature Bank's digital banking business.
> The FDIC will be directly providing these deposits to customers with accounts linked to the digital banking business, according to the press release. Details here.
Tron Founder Justin Sun Proposes Acquiring Credit Suisse for $1.5B and Turning It Into a Crypto-Friendly Bank
In the wake of reports that UBS has agreed to buy Credit Suisse for over $2 billion, Tron founder Justin Sun took to Twitter on Sunday with his own proposal to acquire the struggling financial giant for $1.5 billion and transform it into a crypto-friendly bank.
> Sun praised Switzerland's progressive regulatory environment for cryptocurrency and suggested that integrating Credit Suisse into the Web3.0 world could position the bank as a leader in financial innovation.
> While it's uncertain how serious Sun's offer is or whether Swiss regulators would entertain it, he has a history of making offers for deals that don't come to fruition.
> In January, Sun said he was willing to spend up to $1 billion on assets belonging to Digital Currency Group. Continue here.
DefiLlama Employee Forks Blockchain Data Platform Over Token Dispute
Due to a dispute over an unauthorized token launch, a DefiLlama employee, who goes by the name 0xngmi, has forked a version of the blockchain data platform.
> According to 0xngmi's Twitter post, the token was launched without the support of the team, and they did not want to be associated with it.
> The company had hinted at a token airdrop on Twitter after reaching $5 billion in volume, but two other DefiLlama contributors stated that the decision went against the wishes of most of the team.
> In addition, Tendeeno, a contributor to Llama Corp. projects, tweeted that the launch was planned without the approval of anyone on the DeFiLlama team.
> This conflict showcases the challenges of launching new tokens without full support from the team. Continue reading.
FTX Sets Auction Date for Derivatives Exchange LedgerX
FTX has revised the auction date for its derivatives exchange, LedgerX, to April 4. The notice of revised dates was filed on March 18 in the U.S. Bankruptcy Court for the District of Delaware.
> The auction will take place at the offices of Sullivan & Cromwell, and a sale hearing is scheduled for April 12. The successful bidder will be announced within one business day of the conclusion of the auction. FTX had previously scheduled the auction for March 7 and then revised it to March 22.
> FTX is seeking to sell various business units, including Embed Financial Technologies, FTX Japan, and FTX Europe, in order to raise money for creditors.
> According to a legal filing earlier this year, 117 parties have shown interest in buying FTX entities. More here.
Bitcoin Funds Decline as U.S. Bank Failures Spark Concerns of Fed's Liquidity Easing
According to ByteTree Asset Management's data, Bitcoin funds are experiencing an outflow of coins as investors anticipate an early pivot in favor of liquidity easing from the Federal Reserve (Fed) due to the recent U.S. bank failures.
> The number of coins held by spot and futures-focused ETFs in Europe, Canada, and the U.S. has decreased by 16,560 BTC, equivalent to $409 million, this month.
> This decline in the balance of funds implies a lack of institutional participation in Bitcoin's recent rally, despite it being driven by safe-haven demand and hopes of Fed rate cuts. More here.
General Bytes' Bitcoin ATMs Hacked, Funds on Exchanges and Hot Wallets at Risk
A warning was issued by General Bytes on their Confluence page on March 18, alerting their customers about a high-severity security incident.
> The company revealed that a hacker was able to access and download user names, passwords, and API keys to access funds on exchanges and hot wallets.
> Additionally, the attacker was able to turn off two-factor authentication and scan terminal event logs for instances when customers scanned private keys in the ATM.
> General Bytes recommended that their customers take immediate action to protect their personal information and funds, and provided a security bulletin for reference.
> The hacker was able to run their own Java application remotely by exploiting the master service interface, which is commonly used in bitcoin ATMs to upload videos to the server. Full report here.
Binance's Response to U.S. Senators' Criticism Fails to Address Financials: Report
Binance, a prominent cryptocurrency exchange, has issued a response to criticism leveled against it by U.S. senators, according to Bloomberg.
> The 14-page letter from the exchange's chief strategy officer, Patrick Hillmann, reportedly detailed the company's compliance efforts, but provided little information about its financials, failing to address the requests made by the senators in their March 1 letter.
> The bipartisan group, comprising Elizabeth Warren, Chris van Hollen, and Roger Marshall, accused Binance of deliberately evading regulators, funneling funds to criminals, and withholding financial information from the public.
> They also demanded information about the exchange's relationship with Binance U.S. and its CEO Changpeng Zhao's purported attempts to stifle compliance.
> The senators required a response by March 16. More here.
Microsoft Conceals Non-Custodial Crypto Wallet Integration in Edge Browser
Although Microsoft may not be the first name that comes to mind when it comes to blockchain technology, the company has been experimenting with it for several years.
> Recently, a pseudonymous software researcher named Albacore shared screenshots on Twitter that revealed Microsoft had added code that integrates a non-custodial cryptocurrency wallet into its default Edge browser.
> The screenshots depict a user interface for the wallet, a decentralized application explorer, a news feed, and the ability to buy cryptocurrency through Coinbase and MoonPay.
> The feature is already incorporated into recent releases of the Microsoft Edge browser but is currently hidden from users. Continue here.
Bitcoin Soars Past $28,000 as Federal Reserve's Interest Rate Decision Looms
Bitcoin has surged past $28,000, marking its highest level since June and signaling the return of Bitcoin bulls.
> According to TradingView data, the crypto token has risen 5.2% over the last 24 hours and a staggering 37.8% over the last week, with a 20.8% increase in the past month.
> The rally coincides with speculation that the Federal Reserve could halt or slow the pace of interest rate hikes this week in response to contagion caused by the collapses of major banks.
> CME's FedWatch tool indicates a 62% likelihood of rates being raised by 25 basis points, while the chance of no change is at 38%.