Daily Digest - 9 March 2023

Headlines

▌Mt.Gox's largest creditor plans to keep returned bitcoins

According to people familiar with the matter, Mt.Gox Investment Fund, the largest creditor of the bankrupt cryptocurrency exchange Mt.Gox, intends to hold rather than sell the bitcoin that will be paid to it this year. The fund opted to pay early in September rather than wait for all the lawsuits to be resolved. It will receive about 90 percent of Mt. Gox’s remaining assets in a ratio of about 70 percent bitcoin and 30 percent cash, the person said. They declined to say how much bitcoin the fund expects to receive.

Policies

▌Fed Chairman Powell once again called for a clear regulatory framework for cryptocurrencies

Federal Reserve Chairman Powell once again called for a clear regulatory framework for cryptocurrencies. Federal Reserve Chairman Jerome Powell said U.S. state governments should also play an active role in cryptocurrency regulation. The issuance of a retail central bank digital currency (CBDC) requires congressional approval.

Cryptocurrency

▌JPMorgan Chase will end its partnership with Gemini

According to a person familiar with the matter, JPMorgan Chase will end its partnership with cryptocurrency exchange Gemini, a cryptocurrency exchange owned by Cameron and Tyler Winklevoss. Back in early 2020, JPMorgan counted Gemini and U.S.-listed exchange Coinbase as clients. Additionally, a spokesperson for the San Francisco-based exchange confirmed that Coinbase’s banking relationship with JPMorgan remains intact.

▌Silvergate announces plans to liquidate in an orderly manner

Silvergate (SI.N) announced plans to wind up the bank's business and voluntarily liquidate in an orderly manner and in accordance with applicable regulatory procedures. The stock fell 40% short-term after hours. Silvergate said it was considering how best to preserve the residual value of the asset; an orderly winding down of the bank and voluntary liquidation was the best way forward. The decision is to terminate the Silvergate Exchange Network (SEN). All other deposit-related services remain operational during the winding up of the company. In addition, market sources indicated that the California Department of Financial Protection and Innovation (DFPI) was involved in the liquidation of Silvergate.

▌Airbit Club co-founder and six executives plead guilty to fraud

Six executives at Airbit Club, a global cryptocurrency Ponzi scheme, have admitted their role in a global fraud and money laundering scheme that prosecutors say defrauded victims of a total of $100 million. Pablo Renato Rodriguez, one of the co-founders of Airbit Club, pleaded guilty Wednesday. Co-founder Gutemberg Dos Santos pleaded guilty in October 2021 after being extradited to the United States from his native Panama in November 2020. Three promoters, Cecilia Millan, Karina Chairez and Jackie Aguilar, pleaded guilty earlier this year. Attorney Scott Hughes, who helped Rodriguez and dos Santos launder money, pleaded guilty March 2.