Category: Lending

Celsius responds to NYAG crackdown on crypto lending platforms

Celsius responds to NYAG crackdown on crypto lending platforms

Crypto lending firm Celsius Network has confirmed it is one of three platforms requested to provide information to the New York Attorney General’s office.In a Tuesday blog post, Celsius said it was not one of the two unnamed crypto lending platforms that New York Attorney General Letitia James ordered to “cease any and all such activity” around selling or offering cryptocurrencies. Rather, Celsius said it was “working on providing regulators in New York” with information regarding its business. “If any regulatory or technical changes are required in a specific jurisdiction, Celsius will provide clear and timely communication as needed,” said the lending platform. “We know that the only way to thrive and ensure our long-term growth is through clear regulatory guidance. We anticipate and plan for these kinds of routine checks and balances.”The statement from Celsius comes following the NYAG’s office issuing a non-legally binding request for information from three unnamed crypto lending platforms operating in the state — although the AG did hint at a possible subpoena. James asked the businesses to provide details on their lending products, policies, procedures, clients in New York and other relevant information.While Celsius has not received a cease and desist order from New York state, the platform is the target of regulators in Texas and New Jersey. On Sept. 17, the Texas State Securities Board filed for a hearing with the potential to impose a cease and desist order against crypto Celsius for allegedly not offering securities licensed at the state or federal level. The same day, the New Jersey Bureau of Securities ordered the lending platform to stop offering and selling interest-earning cryptocurrency products.A Celsius spokesperson said at the time that it “wholeheartedly disagreed” with the allegations and was working with United States regulators “to operate in full compliance with the law.” According to the platform’s response to the NYAG’s request for information, Celsius is “having a very open and productive dialogue with regulators around the world.”Related: Crypto lending firm Celsius Network raises $400MOf the other four firms targeted in the NYAG crackdown, Nexo Financial confirmed on Monday it received one of the two cease and desist orders. However, according to a Nexo spokesperson, the company does not offer its Earn Product and Exchange in New York state.“It makes little sense to be receiving a cease and desist order for something we are not offering in New York anyway,” said the spokesperson. “We will engage with the NYAG as this is a clear case of mixing up the recipients of the letter.”The other three companies that received notices from the NYAG remain unidentified. Under New York law, all crypto brokers, dealers, salespersons and investment advisers must register with the NYAG’s Investor Protection Bureau if they are doing business in the state. Those without an exemption who fail to do so will be subject to civil and criminal penalties.

Crypto lender Nexo confirms NYAG order, calls it a ‘mix up’

Crypto lender Nexo confirms NYAG order, calls it a ‘mix up’

Cryptocurrency lending firm Nexo Financial denies the allegations of offering unregistered services to New Yorkers put forth by Attorney General Letitia James.Attorney General James directed two unnamed crypto lending companies to cease operations On Oct. 18, citing failure to register the business in New York and performing unlawful activities. Crypto lender Nexo is revealed to be one of the two companies to receive the cease and desist order from the Office of the Attorney General. Denying their involvement in unlawful operations, Nexo spokesperson said:“Nexo is not offering its Earn Product and Exchange in New York, so it makes little sense to be receiving a cease and desist order for something we are not offering in New York anyway.”According to Nexo, the allegations of operating an unregistered business in New York “appears to be a case of mixing up the recipients of the letter.” The company also confirmed the use of IP-based geoblocking on their platform that prevents New Yorkers from participating in locally unregistered services:“Still, we will engage with the NY AG and seek clarity. Our company retains top-tier legal counsel both from US-based law firms and our in-house legal team.”In addition, the company has also highlighted that Nexo Terms & Conditions explicitly state, “we do not offer our Earn product and Exchange in New York.”To further protect New Yorkers from significant undisclosed risks, the New York State Office of the Attorney General has parallelly directed three more crypto platforms to provide information about their activities and products. The order to shut down operations is backed by the Martin Act, which requires businesses to register before offering or selling securities or commodities in New York. “My office is responsible for ensuring industry players do not take advantage of unsuspecting investors,” said James.Related: New York businesses ask governor to deny permits for crypto miningA group of local New York businesses cosigned a letter asking the New York State Governor Kathy Hochul to deny permits for repurposing the city’s defunct fossil-fuel power plants for crypto mining.The proposal demands an assessment of the environmental impact of restarting the Greenidge Generating Station and the Fortistar North Tonawanda plants, which were shut to control New York’s greenhouse gas (GHG) emissions.

NYAG directs 2 crypto firms to shut down, investigates 3 others

NYAG directs 2 crypto firms to shut down, investigates 3 others

The New York Attorney General’s office has alleged two unnamed crypto lending platforms operating in the state have engaged in unlawful activities and ordered three others to provide information on their businesses.In a Monday announcement, the New York Attorney General’s office said it has ordered two crypto lending platforms — at the time of publication, the names were still redacted — to “cease any and all such activity” relating to selling or offering securities and commodities within ten days. Attorney General Letitia James also requested that three crypto businesses operating in New York — names redacted — provide details on their lending products, policies, procedures, clients in the state and other relevant information.“My office is responsible for ensuring industry players do not take advantage of unsuspecting investors,” said James. “We’ve already taken action against a number of crypto platforms and coins that engaged in fraud or that illegally operated in New York. Today’s actions build on that work and send a message that we will not hesitate to take whatever actions are necessary against any company that thinks they are above the law.”The request for information from the three companies was not legally binding, but the NYAG’s office left the door open to serving a subpoena in the letter. The order to shut down operations is backed by the state’s Martin Act, which grants the AG the enforcement power to bring civil or criminal charges against unregistered securities offerings.James’ messages to the five crypto lending platforms come following the agreement of Bitfinex and Tether to pay $18.5 million in damages as part of a settlement with the NYAG office. The Attorney General later issued a warning to firms operating in the crypto industry: “Play by the rules or we will shut you down.”Under current New York state law, all crypto brokers, dealers, salespersons and investment advisers must register with the NYAG’s Investor Protection Bureau if they are doing business in the state. Those without an exemption who fail to do so will be subject to civil and criminal penalties.Related: ​​NY attorney general warns investors and crypto firms of ‘extreme risks’In September, the New York Attorney General’s office ordered crypto investment platform Coinseed to close its doors after allegedly defrauding investors out of more than $1 million and selling an unlisted token. Coinseed has been told to permanently halt its operations and pay $3 million in fines.

How to make DeFi easier for newcomers, explained

How to make DeFi easier for newcomers, explained

The increased development and investment in DeFi means that there is a constant stream of new products and ways for users to engage with the DeFi community.  This also means more research is required into what protocols are offering and what services are available. One such aggregator, Feeder Finance, offers a user-friendly interface that supports smart contracts, attracts new users and maintains an ever-growing DeFi community. As a leading aggregator with a community of over 10,000 monthly users, the platform offers an efficient front end and focused user experience that provides increased access to a wide range of DeFi protocols. The company plans to add additional products and expand upon its infrastructure, some of which are already available such as swapping and auto-converting tokens to provide liquidity in one click. Learn more about Feeder Finance here Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

Swiss Bank Seba Now Lets Customers Earn Yield on Crypto Holdings

Swiss Bank Seba Now Lets Customers Earn Yield on Crypto Holdings

A FINMA-licensed Swiss bank, Seba, has launched a program enabling clients to earn yield on their crypto holdings. In addition, the bank will “provide support for centralized lending and borrowing services, enabling investors to generate yield by lending bitcoin and ethereum directly with Seba Bank.”
Seba Earn Lets Clients Generate Rewards From Crypto Investments
Seba Bank, a digital asset banking platform licensed by the Swiss Financial Market Supervisory Authority (FINMA), announced the launch of Seba Earn Wednesday. The Switzerland-based bank described the new offering as “an institutional-grade solution enabling clients to earn yield on their crypto holdings.”
Noting that “The launch of Seba Earn caters to growing demand from institutions to manage a range of digital asset yield use cases from staking to decentralized finance (defi), and centralized lending and borrowing,” the bank elaborated:
Seba Earn’s comprehensive staking management platform will enable institutions and individuals to generate rewards from their crypto investment on networks including Tezos, Polkadot, and Cardano, with more protocols coming in the coming months.

In addition, the announcement explains:
Seba Earn will also provide support for centralized lending and borrowing services, enabling investors to generate yield by lending bitcoin and ethereum directly with Seba Bank.
The bank also noted that it “will continue integrating support for additional coins.”
Guido Buehler, CEO of Seba Bank, commented: “It is clear that as institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services like staking, defi and centralized crypto borrowing and lending.”
What do you think about Seba Bank launching a crypto earning program? Let us know in the comments section below.

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borrowing, Cardano, decentralized finance, DeFi, earning program, finma, lending, lending bitcoin, lending ethereum, Polkadot, regulated bank, seba, SEBA Bank, seba earn, staking program, Tezos

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SEBA Bank launches problems for users to earn yield on crypto

SEBA Bank launches problems for users to earn yield on crypto

Customers of Swiss-based financial institution SEBA Bank will soon be able to earn yield on their crypto holdings.In an Oct. 13 announcement, SEBA Bank said investors could use its Bitcoin (BTC) and Ether (ETH) lending services to generate yields as part of its SEBA Earn program. According to the bank, which focuses on offering digital assets, it planned on integrating support for other cryptocurrencies. “As institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services like staking, DeFi and centralized crypto borrowing and lending,” said SEBA Bank CEO Guido Buehler. SEBA said institutions would be able to earn returns through its staking and decentralized finance, or DeFi, problems, in addition to centralized lending and borrowing. Customers can currently generate yields on Polkadot, Tezos and Cardano, but the bank said it planned to add more proof-of-stake protocols in the coming months.Related: First cryptocurrency fund approved in SwitzerlandOne of the first banks focused on digital assets to acquire a custody license in Switzerland, SEBA has been involved in the crypto space since its founding in 2018. Last year, the Bank of France selected SEBA to participate in its experimental digital Euro pilot project aimed at exploring the feasibility of central bank digital currencies in cross-border payments.

Crypto lending firm Celsius Network raises $400M

Crypto lending firm Celsius Network raises $400M

Cryptocurrency lending platform Celsius Network has raised $400 million in a new equity funding round amid United States regulators increasingly cracking down on crypto lending.Announcing the news on Tuesday, Celsius noted that the latest funding was led by Canada’s second-largest pension fund, Caisse de dépôt et placement du Québec (CDPQ), and WestCap, an equity firm established by former Airbnb executive Laurence Tosi.Celsius Network raises $400m. @FT “The funding round was led by WestCap… and Caisse de dépôt et placement du Québec (CDPQ).” More:https://t.co/L5wpMxCvcR— Celsius (@CelsiusNetwork) October 12, 2021Celsius CEO Alex Mashinsky expressed hope that the new fundraising would help the industry reassure regulators about the stability of his crypto lending business and expand it across mainstream financial markets. “It’s not $400 million. It’s the credibility that comes with the people who wrote those cheques,” he said in an interview with the Financial Times on Tuesday.This story is developing and will be updated.

Magic Internet Money races past $1B, sets sights on MakerDao

Magic Internet Money races past $1B, sets sights on MakerDao

Abracadabra Money’s stablecoin Magic Internet Money (MIM) has surged past a $1 billion total supply this month as the project works to provide competition to MakerDAO. Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche, and Arbitrum. Along with MIM, the project also has a SPELL governance token which can be staked on the protocol. The project describes itself as a “spell book” that enables users to provide collateral via interest-bearing bearing tokens such as yvUSDC, xSUSHI and to borrow the MIM stablecoin against their tokens. “To reverse the spell, the caster simply returns the conjured MIMs to the spell book. Then the magically locked interest-bearing tokens are released,” the website reads. Interest-bearing tokens such as xSUSHI provide the hodler with a cut of the fees from the decentralized exchange (DEX) SushiSwap.Abracadabra launched in May, and according to Coingecko, MIM has surged to seventh on the stablecoin rankings with a market cap of $1.14 billion at the time of writing. While MakerDAO’s DAI stablecoin currently sits at fourth with a market cap of $6.4 billion, MIM’s meteoric rise suggests that it could provide strong competition to the popular platform soon. By contrast, DAI was launched back in December 2017 and surpassed a market cap of $1 billion in late 2020. A caveat to that however, is that there was significantly less activity in the crypto market when DAI was initially launched. Abracadabra takes fees from the interest paid on the loans. It surpassed MakerDAO last week in terms of fees, generating $1.27 million versus $969,000 respectively. MakerDAO still looms over Abracadabra in terms of total value locked (TVL), with $13.7 billion to $1.7 billion. Related: MakerDAO founder’s plans to address climate change and pivot back to ETHThe pseudonymous co-founder of Abracadabra, who goes by the name “Squirrel” told The Defiant on Oct. 7 that the project’s success has been driven by its efforts to enable support for multiple blockchains: “By being multi-chain with Abracadabra, we are the first and only decentralized stablecoin that can be minted on various chains.”Squirrel also highlighted that its fee structure has contributed to its rapid adoption, as SPELL stakers receive 75% of the interest payments on the protocols’ loans via SPELL tokens that are rewarded to the stakers.

DeFi platform Vee Finance exploited for $35M on Avalanche blockchain

DeFi platform Vee Finance exploited for $35M on Avalanche blockchain

Decentralized finance (DeFi) platform Vee Finance reported $35 million losses in the latest exploit, just a few days after launching the mainnet on the Avalanche network.After pausing services due to suspicious activity on Sept. 20, Vee Finance confirmed that its platform was under an attack resulting in a loss of 8,804 Ether (ETH) and around 214 Bitcoin (BTC). The total amount is worth more than $35 million at the time of writing.According to the official incident announcement, the suspected attacker has collected stolen assets on one address after exploiting the VEE Finance trade contract address. In order to prevent further losses, the VEE Finance team suspended the platform’s contracts alongside deposits and borrow function.Vee Finance did not elaborate on the specifics and possible causes behind the latest exploit at the time of publication. “The VEE team is actively working to further clarify the incident and will continue to try to contact the attacker to recover the assets. We are taking and handling this incident seriously and will do our best to protect the interests of VEE Finance users,” the announcement noted.Vee Finance is a DeFi lending platform focused on supporting multiple mining mechanisms including liquidity mining, transaction mining, and leveraged mining. The platform officially launched its mainnet on Avalanche on Sept. 14 alongside a liquidity mining launch. After integrating Chainlink price feeds as an oracle network solution, Vee Finance broke $300 million in total value locked on its platform on Sept. 19.Related: Latest DeFi hack targeting BSC sees $12.7M in Bitcoin stolen from pNetworkThe latest incident comes amid the increasing number of exploits targeting the Avalanche, a DeFi-focused blockchain protocol launched in September 2020. Last week, the Avalanche-based DeFi application Zabu Finance was reportedly exploited for $3.2 million, causing the value of Zabu tokens plummet to zero.Avalanche’s native token, AVAX, has been hitting new all-time highs recently, with its price surpassing $75 on Sept. 18, according to data from CoinMarketCap. At the time of writing, AVAX is trading at $61.79, down about 3% over the past 24 hours, but still up around 12% over the past seven days.

Following SEC notice, Coinbase abandons plan for crypto lending program

Following SEC notice, Coinbase abandons plan for crypto lending program

United States-based cryptocurrency exchange Coinbase has announced it will not be pursuing its Lend crypto lending program.In a Sept. 17 update to a blog announcing the program in June, Coinbase hinted at difficulties in regulatory clarity across the crypto industry in its decision to not bring the crypto lending product to the market. According to the exchange, “hundreds of thousands of customers from across the country” had already signed up for Lend, a program that aimed at offering 4% annual yield returns on deposits of USD Coin (USDC). The announcement comes less than two weeks after the Securities and Exchange Commission, or SEC, threatened Coinbase with legal action if the exchange launched Lend, which it has deemed a security under its purview. Coinbase chief legal officer Paul Grewal later claimed the lending product was not an “investment contract or a note” and questioned the SEC’s decision as lacking clarification. At the time, the exchange said it would be pushing the launch of Lend back “until at least October.”Related: Regulatory and privacy concerns trail SEC’s threat to CoinbaseCoinbase continues to be one of the largest crypto exchanges in the world, with more than $6.3 billion in daily trading volume, according to CoinMarketCap. This month, the exchange also announced plans to raise $1.5 billion in a debt offering to further grow the company’s balance sheet.

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