{"id":10861,"date":"2023-03-12T05:36:36","date_gmt":"2023-03-12T05:36:36","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=10861"},"modified":"2023-03-12T05:36:38","modified_gmt":"2023-03-12T05:36:38","slug":"silicon-valley-bank-down-usdc-depegged-ftx-billed-34m-in-jan","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10861","title":{"rendered":"Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<h2><strong>Top Stories This Week<\/strong><\/h2>\n<h3><strong>Silicon Valley Bank shut down by California regulator, holding over $5 billion for prominent crypto VCs<\/strong><\/h3>\n<p>Silicon Valley Bank (SVB) was shut down by California\u2019s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category. The bank held over $5 billion in funds from major venture capital firms. Silicon Valley Bank is one of the top 20 largest banks in the United States, providing banking services to crypto-friendly venture companies, such as Sequoia Capital and Andreessen Horowitz.<\/p>\n<h3><strong>USDC depegs as Circle confirms $3.3B stuck with Silicon Valley Bank<\/strong><\/h3>\n<p>USD Coin (USDC) issuer Circle confirmed that $3.3 billion of its $40 billion USDC reserves remain at Silicon Valley Bank, triggering a sell-off that resulted in the stablecoin falling below $1. The stablecoin ecosystem felt an immediate impact as USDC depegged from the U.S. dollar, with major stablecoin depegging from the U.S. dollar as a consequence, including DAI, USDD and FRAX. The USDC price was slowly re-pegging on late Saturday after turbulent trading hours.  Circle plans to cover missing liquidity in SVB with corporate funds. <\/p>\n<p>Read also<\/p>\n<p>                            Features<\/p>\n<p>Crypto mass adoption will be here when\u2026 [fill in the blank]<\/p>\n<p>                            Features<\/p>\n<p>WTF happened in 1971 (and why the f**k it matters so much right now)<\/p>\n<h3><strong>Silvergate Capital Corporation to \u2018voluntarily liquidate\u2019 Silvergate Bank<\/strong><\/h3>\n<p>Silvergate Capital Corporation announced this week plans to \u201cwind down operations\u201d and liquidate its crypto arm, Silvergate Bank. The decision was made \u201cin light of recent industry and regulatory developments,\u201d said the company. Silvergate was one of the major banking partners for many crypto firms, but drew concerns about its solvency after delaying the filing of an annual financial report. Although its closure does not appear to be a systematic risk for the United States banking system, crypto firms are bracing for the potential effects of its exit, such as an increase in banking concentration and challenges for crypto venture capital firms in the U.S..<\/p>\n<h3><strong><strong><\/strong>SBF\u2019s lawyers signal need to push back October criminal trial<\/strong><\/h3>\n<p>Lawyers representing FTX founder Sam Bankman-Fried have flagged that it may be necessary to delay his criminal trial, since the defense is still waiting for a \u201csubstantial portion\u201d of evidence and more charges have been brought against Bankman-Fried in late February. Meanwhile, law firms, investment banks and consulting companies working with FTX on its bankruptcy case billed the crypto exchange a combined $34.18 million in January, court documents revealed. FTX\u2019s chief restructuring officer and new CEO, John J. Ray III, also received a hefty pay package, charging $1,300 an hour, amounting to a total of $305,000 in February.<\/p>\n<h3><strong>Biden budget proposes 30% tax on crypto mining energy use, double capital gains tax, and a ban on crypto wash sales<\/strong><\/h3>\n<p>United States crypto miners could be subject to a 30% tax on electricity costs under a budget proposal by President Joe Biden aimed to \u201creduce mining activity.\u201d According to the White House, any firm using resources \u2014 whether they be owned or rented \u2014 would be liable for a 30% taxation of the electricity cost used to mine digital assets. Another point affecting the crypto industry in the budget proposal includes ending tax-loss harvesting and nearly doubling tax rates on capital gains for some investors to 39.6% on long-term investments, up from the current 20% tax rate.<\/p>\n<h2><strong>Winners and Losers<\/strong><\/h2>\n<p>At the end of the week, Bitcoin <strong>(<\/strong><strong>BTC<\/strong><strong>)<\/strong> is at <strong>$19,920<\/strong>, Ether <strong>(<\/strong><strong>ETH<\/strong><strong>)<\/strong> at <strong>$0,000<\/strong> and <strong>XRP<\/strong> at <strong>$0.35<\/strong>. The total market cap is at <strong>$928.9 <\/strong>billion, according to CoinMarketCap.<\/p>\n<p>Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Kava <strong>(KAVA) <\/strong>at 12.40%, Bone ShibaSwap <strong>(BONE) <\/strong>at 1.22% and UNUS SED LEO<strong> (LEO) <\/strong>at 1.05%.<\/p>\n<p>The top three altcoin losers of the week are Stacks <strong>(STX) <\/strong>at -31.05%, Mina <strong>(MINA) <\/strong>at -29.40% and SingularityNET <strong>(AGIX) <\/strong>at -29.14%.<\/p>\n<p>For more info on crypto prices, make sure to read Cointelegraph\u2019s market analysis.<\/p>\n<p>Read also<\/p>\n<p>                            Features<\/p>\n<p>Sell or hodl? How to prepare for the end of the bull run, Part 2<\/p>\n<p>                            Features<\/p>\n<p>Guide to real-life crypto OGs you\u2019d meet at a party (Part 2)<\/p>\n<h2><strong>Most Memorable Quotations<\/strong><br \/><\/h2>\n<p>\u201cThis industry has grown leaps and bounds, especially for being as young as it is, and I\u2019m still confident that we are in the process of building a better, more equitable financial system in the United States and globally.\u201d<\/p>\n<p><strong>Charlie Shrem<\/strong><strong>, general partner at Druid Ventures<\/strong><\/p>\n<p>\u201cNotwithstanding a regulatory framework around stablecoins, they\u2019re going to be commodities in my view.\u201d<\/p>\n<p><strong>Rostin Behnam<\/strong><strong>, chairman of the U.S. Commodity Futures Trading Commission<\/strong><\/p>\n<p>\u201cWithout knowledge or exposure to the industry, women may lose confidence and interest in pursuing careers in the sector.\u201d<\/p>\n<p><strong>Sandy Carter<\/strong><strong>, chief operating officer and head of business development at Unstoppable Domains<\/strong><\/p>\n<p>\u201cIt is important that regulators foster growth in IoT and M2M payments, as it is key to maintaining the global competitiveness of the European digital economy.\u201d<\/p>\n<p><strong>Digital Euro Association<\/strong><\/p>\n<p>\u201cDespite the volatile 2022 crypto landscape, consumers didn\u2019t lose faith in their crypto investments.\u201d<\/p>\n<p><strong>Paxos\u2019 Annual Survey<\/strong><\/p>\n<p>\u201cAs the bank of choice for crypto, Silvergate Bank\u2019s failure is disappointing, but predictable.\u201d<\/p>\n<p><strong>Elizabeth Warren<\/strong><strong>, U.S. senator<\/strong><\/p>\n<h2><strong>Prediction of the Week\u00a0<\/strong><\/h2>\n<h3>Bitcoin battles $20K as trader calls bank chaos \u20182008 all over again\u2019<\/h3>\n<p>Bitcoin fell to its lowest price since mid-January on March 10 as cryptocurrency markets panicked over a potential banking crisis, data from Cointelegraph Markets Pro and TradingView shows.<\/p>\n<p>The BTC\/USD pair saw the majority of its losses during the previous day\u2019s Wall Street trading as risk assets everywhere suffered setbacks courtesy of the market\u2019s cold feet on the back of major restructuring at Silicon Valley Bank (SVB) \u2014 the United States\u2019 16th largest commercial lender.<\/p>\n<p>\u201cWill probably wick into 18-19k before this is over- but it\u2019s just a retest,\u201d pseudonymous trader Credible Crypto wrote on Twitter.<\/p>\n<p>Uncertainty remains in the air as the aftermath of the meltdown at SVB is far from over \u2014 crypto stablecoins in particular are feeling the heat. USD Coin depegged from the U.S. dollar on March 11, trading at $0.93 an hour after disclosing it had $3.3 billion held SVB, triggering a domino effect on other stablecoins.<\/p>\n<h2><strong>FUD of the Week\u00a0<\/strong><\/h2>\n<h3><\/h3>\n<h3><strong><strong><strong>Hedera confirms exploit on mainnet led to theft of service tokens<\/strong><\/strong><\/strong><\/h3>\n<p>The team behind distributed ledger Hedera confirmed that a smart contract exploit on the Hedera mainnet led to the theft of several liquidity pool tokens. The attacker targeted liquidity pool tokens on decentralized exchanges that derived its code from Uniswap V2 on Ethereum, which was ported over for use on the Hedera Token Service. The suspicious activity was detected when the attacker attempted to move the stolen tokens across the hashport bridge. Hedera didn\u2019t confirm the amount of tokens that were stolen.<\/p>\n<h3><strong><strong><\/strong>Tether strikes at WSJ over \u2018stale allegations\u2019 of faked documents for bank accounts<\/strong><\/h3>\n<p>The company behind stablecoin Tether has rebuffed reports claiming it had ties to entities that faked documents and used shell companies for access to the banking system. Based on leaked documents and emails, The Wall Street Journal reported that entities tied to Tether and its sister crypto exchange, Bitfinex, faked sales invoices and transactions in order to open bank accounts. Tether called the findings of the report \u201cstale allegations from long ago\u201d and \u201cwholly inaccurate and misleading.\u201d A \u201cproud\u201d partner of law enforcement, the firm claims to routinely and voluntarily assist authorities in the U.S. and abroad.<\/p>\n<h3><strong>NY AG sues KuCoin for selling securities and commodities without registration<\/strong><\/h3>\n<p>New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange KuCoin after she was able to buy and sell crypto on the exchange, which is not registered in New York. James alleges that KuCoin violated securities law when it \u201csold, offered to sell, purchased and offered to purchase cryptocurrencies that are commodities and securities\u201d to New Yorkers. The action is one of the first times a regulator claimed in court that ETH is a security.<\/p>\n<h2><strong>Best Cointelegraph Features<\/strong><\/h2>\n<h3><strong>D&amp;D nukes NFT ban, \u2018Kill-to-Earn\u2019 zombie shooter, Illuvium: Zero hot take \u2014 Web3 Gamer<\/strong><\/h3>\n<p>How a teenager made $1.6 million playing Yuga Labs\u2019 new game and why people are going crazy over a new \u201ckill-to-earn\u201d zombie shooting game?<\/p>\n<h3><strong><strong><\/strong>$54B fund partner runs women-only DAO, LatAm blockchain gaming guild<\/strong><\/h3>\n<p>\u201cI do come from a conventional ecosystem, banking and finance, but I have never been very much of a conventional person myself.\u201d<\/p>\n<h3><strong>Become a hot new NFT artist via the \u2018soft shell taco method\u2019 \u2014 Terrell Jones, NFT Creator<\/strong><\/h3>\n<p>Terrell Jones tells stories with NFTs in a distinctive style influenced by gangster films that has captured the attention of the digital art world and Sotheby\u2019s.<\/p>\n<p>Subscribe<\/p>\n<p>The most engaging reads in blockchain. Delivered once a<br \/>\n        week.<\/p>\n<h2 class=\"author__name\">Editorial Staff<\/h2>\n<p>Cointelegraph Magazine writers and reporters contributed to this article.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/magazine\/silicon-valley-bank-down-usdc-depegged-ftx-billed-34m-jan-hodlers-digest-march-5-11\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top Stories This Week Silicon Valley Bank shut down by California regulator, holding over $5 billion for prominent crypto VCs Silicon Valley Bank (SVB) was shut down by California\u2019s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. The California watchdog appointed the Federal Deposit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10861"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10861\/revisions"}],"predecessor-version":[{"id":10863,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10861\/revisions\/10863"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10862"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}