2/28/2024 0 Comments Gemini earn btcNow, another large domino, Barry Silbert’s Digital Currency Group (DCG), may be about to topple. Crypto tokens have all been new forms of existing financial instruments used in the service of old shenanigans-whether it’s money laundering, overleveraged trading, asset inflation with nonfungible tokens (NFTs), or pump-and-dumps, using decentralized finance tokens as penny stocks. The cryptocurrency lobby attempts to confuse users and regulators with claims that “technology” makes everything different. In his bankruptcy documents detailing how Celsius became insolvent, CEO Alex Mashinsky doesn’t clearly spell out who the loans are to or from. FTX was both borrowing from and lending money to crypto lender BlockFi, which also went bust. Only instead of writing checks between different accounts to temporarily inflate them with non-existent funds, they were making loans to each other and counting each loan as an asset. Its founder and two top executives have been charged with fraud.Īll of these firms relied on a modern-day form of check kiting to make themselves appear solvent when they were not. FTX, one of the largest crypto exchanges, fell in November. Lending platforms Celsius and Voyager followed in July. Its failure took out crypto hedge fund Three Arrows Capital (3AC) in June. TerraUSD, a “stablecoin” token used in place of real dollars, which had reached a supposed value of $18 billion, collapsed in May. It’s a collapse that has taken out fortunes, or supposed fortunes, worldwide-and it isn’t over yet. One by one, multiple large crypto firms toppled, dragging many minor firms down along with them in a small-scale replay of the 2008 financial crisis. After the highs of 2021, cryptocurrency crashed to the ground in 2022.
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