Breaking news! Buffett's "darling" stops cryptocurrency trading business and will exchange Bitcoin and USDC stablecoins within 90 days

FX168 Financial News Agency (Asia Pacific) reported that Nubank, the largest digital bank in Brazil, which is held by Warren Buffett, announced that it would stop trading its cryptocurrency Nucoin from Tuesday (September 10) local time. Customers holding at least 100 Brazilian reals in Nucoin will have 90 days to exchange them for Bitcoin or USDC stablecoin.

According to Portal do bitcoin, Nubank's move to stop trading Nucoin tokens means the end of its cryptocurrency business launched in March 2023.

Source: Portal do bitcoin

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Customers who hold at least 100 Brazilian reals in Nucoin will be able to exchange them for Bitcoin or USDC, and users have up to 90 days to make this conversion, that is, before December 9. If Nucoin holders do not make a choice within the deadline, the cryptocurrency will be kept for accumulation and "future benefit from the rewards program".

According to the company, from now on, Nucoin can only be used as part of the loyalty program to redeem benefits for products offered within the platform. The bank said that the cryptocurrency program will include new types of benefits, such as discounts for "Shopping do Nu".

On the "Reclame Aqui" platform, some user complaints about the termination of Nucoin transactions have appeared. One customer said that he had 41 reais in Nucoin that he could not sell. Another claimed that he bought thousands of Nucoin with cash but did not receive cash back when using the fintech card.

"In other words, the bank sold me an asset and now, without even worrying about my losses, it just suddenly decided to close it," said the user.

For customers who hold at least 100 Brazilian reals in Nucoin and want to exchange Nucoin for Bitcoin or USDC, they must fill out the exchange declaration form provided by Nubank, which acknowledges that "Nubank is not responsible for any loss, damage or loss that may be suffered as a result of the conversion of (customers) Nucoin for Bitcoin or USDC."

In addition to Nucoin, Nubank previously allowed a range of cryptocurrencies to be traded on its platform, and its founder David Vélez has said that he authorized the bank to hold up to 1% of its cash in the form of digital currency.

Although Buffett does not invest directly in Bitcoin, his Berkshire Hathaway holdings in Brazilian Nubank shares actually also have exposure to digital assets.

Finbold reported that Berkshire Hathaway holds as many as 107 million shares of Nu Holdings, and the company's stock price has risen an astonishing 66% this year.

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In 2021, Buffett bought shares of the company for nearly $750 million around the time of Nu Holdings' initial public offering (IPO).

As of the close of U.S. stocks on Tuesday, Nubank's U.S. stock price fell slightly by 0.58% in a single day to $13.73, but recorded a 14.32% increase in a single month.

Source: Trading View