Crypto News Recap: 3 firms shut down, New update on BNB Chain, Celsius’ bankruptcy exit, and more; May 21–27, 2023
We welcome you to another edition of MelegaSwap’s weekly crypto news summary! From May 21st to May 27th, 2023, we’ll be bringing you a series of exciting updates from the cryptocurrency market. So fasten your seatbelts and brace yourself for an exhilarating ride!
Major crypto platforms Hotbit, Tradeblock, and Unbanked have all shut down this week, leaving some of their millions of users looking for ways to recoup their funds. On a more positive note, the Securities and Exchange Commission (SEC) has approved Prometheum Ember Capital as the first Digital Assets Securities Qualified Custodian, providing a much-needed level of security for investors who want to hold their digital assets with a regulated custodian.
Furthermore, BNB Chain is set to undergo the Luban update in June, bringing multiple upgrades and functionalities to the blockchain ecosystem. In other news, Binance has assisted in freezing $4.4 million in cryptocurrency associated with North Korean cybercrime syndicates. Meanwhile, Celsius has chosen Fahrenheit’s bid for bankruptcy exit, backed by investment firm WestCap, while Binance has launched an innovative NFT loan service, allowing users to borrow against their NFTs without having to sell them.
Brace yourself for a thrilling dive into the world of cryptocurrency as we uncover the top news updates of the week!
TOP CRYPTO NEWS (MAY 21-MAY 27, 2023)
- Hotbit, Tradeblock, and Unbanked crypto platforms all shut down
- SEC approves Prometheum Ember Capital as the first Digital Assets Securities Qualified Custodian
- Luban Update coming to BNB Chain in June
- Binance assists in freezing $4.4M associated with North Korean cybercrime syndicates
- Celsius chooses Fahrenheit’s bid for bankruptcy exit
- Binance launches innovative NFT loan service
Hotbit, Tradeblock, and Unbanked crypto platforms all shut down
Hotbit, a crypto exchange with over 5 million users, is shutting down all centralized exchange (CEX) operations due to deteriorating operating conditions, a shift in the crypto industry trend away from CEXs, and multiple cyberattacks and exploitation of project flaws.
Similarly, US regulatory pressure has forced crypto FinTech firm Unbanked to shut down its cryptocurrency services. The co-founders expressed disappointment and urged customers to withdraw funds within 30 days. At this moment, it is unclear whether the company will file for bankruptcy.
Digital Currency Group (DCG) is also closing its TradeBlock subsidiary due to uncertain cryptocurrency regulations in the US. This is the latest setback in the industry, and many companies are now looking to other countries with more favorable regulations.
SEC approves Prometheum Ember Capital as the first Digital Assets Securities Qualified Custodian
Prometheum Ember Capital, a subsidiary of Prometheum Inc., has received Financial Industry Regulatory Authority (FINRA) approval to operate as a special-purpose broker-dealer for digital asset securities from the SEC. This allows them to custody digital asset securities for retail and institutional clients.
This marks a significant step forward for the digital asset industry, providing regulatory protections and increasing investor confidence. However, Prometheum claims to be committed to building a safer, more responsible industry, and this approval is a major milestone in that effort.
Luban Update Coming to BNB Chain in June
BNB Chain will undergo the Luban network upgrade on June 11, 2023, incorporating three BEPs: Fast Finality, Cross Chain Relayer Management, and CometBFT Light Block Validation.
However, the upgrade’s aim and purpose are to improve network security, reduce the possibility of chain reorganization, mitigate potential security issues in the BSC Bridge, and improve network performance. As such, Luban will make the BNB chain faster, more secure, and more user-friendly, attracting new users and investors.
Binance assists in freezing $4.4M associated with North Korean cybercrime syndicates
Binance froze accounts linked to four North Korea entities sanctioned by the US Treasury Department over a year ago. The entities include Chinyong Information Technology Cooperation Company, Pyongyang University of Automation, the 110th Research Center, and the Technical Reconnaissance Bureau.
However, the entities are believed to generate revenue for North Korea’s WMD and ballistic missile programs by using fake or stolen identities to apply for overseas IT jobs. Meanwhile, Binance’s proactive approach to identifying and freezing accounts linked to the entities sends a strong message that it will not tolerate the use of its platform for illicit activities.
Celsius chooses Fahrenheit’s bid for bankruptcy exit
Fahrenheit has acquired Celsius’ assets, valued at $2 billion, after the latter’s bankruptcy filing last year. Celsius account holders will become the sole owners of the new equity in NewCo, overseen by a new board of directors appointed by creditors.
Even though Celsius and its creditors have accepted the offer, the acquisition still needs regulatory approval in order to be completed. Celsius intends to negotiate and publicly file a plan sponsor agreement with Fahrenheit, a backup plan sponsor agreement with BRIC, a revised Chapter 11 plan, and a disclosure statement in the coming weeks, all of which are subject to bankruptcy court approval.
Binance launches innovative NFT loan service
Binance Marketplace has launched Binance NFT Loans, an innovative new service that enables users to borrow Ethereum (ETH) by using their NFTs as collateral. The service is currently available for “blue-chip” NFTs, which include Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. Moreover, Binance is offering a 70% discount on the current borrowing interest rates for the launch of the service.
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