In this post, we present, a brief review of what was the most noteworthy crypto news of the week.
Bittrex US Files for Bankruptcy
First, the exchange Bittrex has filed for Chapter 11 bankruptcy protection in the US District of Delaware.
“Bittrex US’s decision to file for Chapter 11 is the final step in its process to cease doing business in the United States. Our customers can rest assured that their funds are safe and that our services will continue as usual.”
Bittrex itself estimates that it has more than 100,000 creditors, with estimated liabilities and assets in the range of $500 million to $1 billion.
Incidentally, the statement came after the U.S. Securities and Exchange Commission in April charged the company and its co-founder and former CEO, William Shihara, with securities violations.
Binance Pauses Bitcoin Withdrawals
Second, the exchange Binance, tweeted on May 8, that it had temporarily suspended BTC withdrawals due to a “large volume of pending transactions.”
It also indicated that it was “working on a solution” and that Bitcoin withdrawals would return “as soon as possible.” It added that it was working to “expedite the confirmation of all pending transactions.”
Interestingly, Binance twice paused Bitcoin withdrawals from its platform in recent hours, citing “a congestion issue.”
Binance subsequently resumed Bitcoin withdrawals after a temporary pause, with transactions showing as successfully sent to users’ wallets. However, there may still be delays with actual transaction verifications.
Grayscale files three new cryptocurrency-linked ETFs with the SEC.
Liechtenstein Proposes to Pay for Government Services with Bitcoin
Daniel Risch, the Prime Minister of Liechtenstein, one of the world’s smallest countries located in Central Europe, has said he wants citizens to be able to pay for government services with Bitcoin.
Likewise, according to German news outlet Handelsblatt, in addition to accepting Bitcoin as a legal means of payment in the country, Daniel Risch is also considering investing part of his state reserves in the cryptocurrency.
Now, Daniel Risch explained that payments received in Bitcoin and other cryptocurrencies by government services will be converted to Liechtenstein’s official currency, the Swiss franc, due to the risk of volatility.
“Cryptocurrencies like Bitcoin are currently still too risky. But this assessment may change.”
Ishan Wahi, to prison for Information Trafficking
Former Coinbase manager Ishan Wahi was sentenced to two years in prison for insider trading.
To recall, Ishan Wahi jointly with his brother Nikhil, made over $1.5 million by investing in new digital assets just before they were listed by Coinbase.
In other words, Ishan Wahi was able to use his knowledge of incoming assets to buy them and then sell them quickly, making huge profits. When the exchange lists new coins and tokens, they rapidly increase in value, a phenomenon known as “the Coinbase effect.”
Commenting on this, U.S. Attorney Damian Williams said, “Today’s ruling should send a strong signal to all participants in the cryptocurrency markets that the laws definitely apply to them.”
Estonia with Stricter Crypto Rules
Indeed, the drawbacks that arose from Estonia’s lax licensing requirements are already being reduced. By the enactment of the Prevention of Money Laundering and Terrorist Financing Act, which came into force on March 15th.
Incidentally, according to a statement from the Estonian Financial Intelligence Unit (FIU), this has led to more than 200 crypto providers abandoning their licenses. Another 189 also had their licenses revoked for “non-compliance with requirements.”
However, on June 15, stricter crypto rules will come into force in Estonia. Thus giving up its brief attempt to become a world leader in the cryptocurrency industry.
By Marina Meza
