Silicon Valley Bank down, USDC de-indexed, FTX charged $34 million in January: Hodler's Digest, March 5-11
Top stories this week Silicon Valley Bank shut down by California regulator, holding over $5 billion for major crypto VCs
by the California financial watchdog on March 10 after announcing a major asset and stock sale aimed at raising additional capital. The California watchdog has appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution, and per property class. large venture capital firms. Silicon Valley Bank is one of the 20 largest banks in the United States. It provides banking services to crypto-friendly venture capital firms, such as Sequoia Capital and Andreessen Horowitz.
USDC pulls out as Circle confirms $3.3 billion locked with Silicon Valley Bankthat $3.3 billion of its 40 billion USDC reserves remain at Silicon Valley Bank, triggering a selloff that sent the stablecoin plummeting below $1. The stablecoin ecosystem felt an immediate impact when the USDC broke away from the US dollar, resulting in major stablecoins including DAI, USDD, and FRAX. USDC price slowly recovered on Saturday night after hours of turbulent trading. Circle in SVB with corporate funds.
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Silvergate Capital Corporation to "Voluntarily Liquidate" Silvergate Bankplans this week to "reduce operations" and liquidate its crypto arm, Silvergate Bank. The decision was made "in light of recent industry and regulatory developments," the company said. Silvergate was a major banking partner for many crypto firms, but raised concerns about its solvency after it delayed filing an annual financial report. While its shutdown doesn't appear to be a systematic risk to the US banking system, crypto businesses are on its way out, such as increased banking concentration and challenges for crypto venture capital firms in the US.
SBF Lawyers Signal Need to Postpone October Criminal TrialSam Bankman-Fried has signaled that his criminal trial may need to be delayed as the defense is still awaiting a "substantial part" of evidence and further charges were brought against Bankman-Fried in late February. Meanwhile, law firms, investment banks and consulting firms working with FTX on its bankruptcy filing in January, court documents have revealed. FTX Director of Restructuring and new CEO John J. Ray III also received a high salary, charging $1,300 per hour for a total of $305,000 in February.
Biden's budget proposes a 30% tax on energy use in crypto mining, a double capital gains tax, and a ban on crypto wash salessubjected to a 30% tax on electricity costs as part of President Joe Biden's budget proposal to "reduce mining". According to the White House, any company using assets – whether owned or leased – would be liable for taxation of 30% of the cost of electricity used to operate digital assets. industry in the budget proposal includes an end to tax loss harvesting and the near doubling of capital gains tax rates for certain investors to 39.6% on long-term investments, in increase from the current tax rate of 20%.
by the California financial watchdog on March 10 after announcing a major asset and stock sale aimed at raising additional capital. The California watchdog has appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution, and per property class. large venture capital firms. Silicon Valley Bank is one of the 20 largest banks in the United States. It provides banking services to crypto-friendly venture capital firms, such as Sequoia Capital and Andreessen Horowitz.
USDC pulls out as Circle confirms $3.3 billion locked with Silicon Valley Bankthat $3.3 billion of its 40 billion USDC reserves remain at Silicon Valley Bank, triggering a selloff that sent the stablecoin plummeting below $1. The stablecoin ecosystem felt an immediate impact when the USDC broke away from the US dollar, resulting in major stablecoins including DAI, USDD, and FRAX. USDC price slowly recovered on Saturday night after hours of turbulent trading. Circle in SVB with corporate funds.
Read also
FeaturesMass adoption of crypto will be here when… [fill in the blank]
FeaturesWTF happened in 1971 (and why the hell is it so important right now)
Silvergate Capital Corporation to "Voluntarily Liquidate" Silvergate Bankplans this week to "reduce operations" and liquidate its crypto arm, Silvergate Bank. The decision was made "in light of recent industry and regulatory developments," the company said. Silvergate was a major banking partner for many crypto firms, but raised concerns about its solvency after it delayed filing an annual financial report. While its shutdown doesn't appear to be a systematic risk to the US banking system, crypto businesses are on its way out, such as increased banking concentration and challenges for crypto venture capital firms in the US.
SBF Lawyers Signal Need to Postpone October Criminal TrialSam Bankman-Fried has signaled that his criminal trial may need to be delayed as the defense is still awaiting a "substantial part" of evidence and further charges were brought against Bankman-Fried in late February. Meanwhile, law firms, investment banks and consulting firms working with FTX on its bankruptcy filing in January, court documents have revealed. FTX Director of Restructuring and new CEO John J. Ray III also received a high salary, charging $1,300 per hour for a total of $305,000 in February.
Biden's budget proposes a 30% tax on energy use in crypto mining, a double capital gains tax, and a ban on crypto wash salessubjected to a 30% tax on electricity costs as part of President Joe Biden's budget proposal to "reduce mining". According to the White House, any company using assets – whether owned or leased – would be liable for taxation of 30% of the cost of electricity used to operate digital assets. industry in the budget proposal includes an end to tax loss harvesting and the near doubling of capital gains tax rates for certain investors to 39.6% on long-term investments, in increase from the current tax rate of 20%.
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