After the Court Seizes the Assets of Three Arrows Capital, VGX Grows by 573%

Alexander Salazar
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After the Court Seizes the Assets of Three Arrows Capital, VGX Grows by 573%

Although Voyager Digital claims to have over 100,000 creditors, their native token VGX has accumulated significant gains. A reason for the increase might be the attempts by the crypto lender to restructure its capital by buying back tokens.

The native token of crypto lender Voyager Digital started a rally after the verdict of the court on the 3AC case. Despite seeming a strange coincidence, it creates a turn of events given the issues both platforms have recently shared.

The History between Voyager Digital and Three Arrows Capital

Despite the collapse in the overall market, Voyager has faced many financial challenges, like various DeFi platforms. The platform recently filed for Chapter 11 bankruptcy in a New York court. That happened after they announced they would suspend all withdrawals, mirroring other companies.

The problems of Voyager Digital started in late June when they first issued a default notice for Three Arrows Capital (3AC). That measure followed the inability of the cryptocurrency hedge fund to make payments on a loan of over USD 700 million. The exposure included about 15,250 BTC and 350 million USDC.

The failed payment by 3AC and the decline in cryptocurrency prices were the primary factors behind the bankruptcy petition by Voyager Digital. CEO Stephen Ehrlich did not hesitate to say that the loan led the crypto lender to sign the motion.

VGX Grows Significantly after the Court Seizes the Assets of 3AC

Voyager Digital manages between USD 1 and 10 billion worth of cryptocurrency assets. Although the firm claims to have over 100,000 creditors, its native token VGX has recently posted gains of up to 586%. Despite being under threat of bankruptcy, its price went from USD 0.15 to a high of USD 1.01.

VGX is trading at around USD 0.488 and has accumulated a 140% gain over the last week. While its daily trading volume is above USD 442.06 million, its market capitalization is about USD 148.30 million, according to CoinGecko.

The bullish trend began after the news of a bankruptcy order a New York-based federal judge Martin Glenn. The court officer passed a motion to seize the assets of 3AC following the disappearance of Zhu Su and Kyle Davies. The co-founders of Three Arrows Capital reportedly hid to escape creditors seeking to recover their funds.

Three Arrows Capital, which had been in business for almost ten years, sat on assets worth around USD 10 billion in June. The ruling by Glenn allows the subpoena service to the founders of 3AC and the companies and institutions working with them.

The news of the court order and the favorable pricing of the VGX token came only hours apart. However, a reason for the increase in the price of the crypto asset might be the attempts by Voyager Digital to restructure its capital. The platform buys back tokens in bulk to create liquidity for its customers.

That company might also be planning to make an acquisition. If that happened, it might provide liquidity to the platform and drive the price of VGX higher.

By Alexander Salazar

UK Judge Approved Blockchain Process Serving Through NFT

Jenson Nunez
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UK Judge Approved Blockchain Process Serving Through NFT

A judge in the United Kingdom greenlighted legal documents to get served over a blockchain via a non-fungible token. Service of process, the procedure by which a party to a lawsuit gives an appropriate notice of legal action to another party, can take effect through a blockchain in Britain now.

A judge in the United Kingdom approved legal documents to get served through a blockchain via a non-fungible token (NFT).

Service of process, the procedure by which a party to a lawsuit brings an appropriate notice of initial legal activities to another party, can take effect over a blockchain in Britain now. The observation of service itself would appear as an NFT.

Although these items usually take the form of artwork, NFTs can also play the role of a digital certificate of authenticity.

Serving the Community with Blockchain Tech

The decision arrived from a case conducted by the founder of an online gambling entity against digital asset exchanges and other networks, including Binance. According to a legal claim issued by Fabrizio D’Aloia, his digital assets got cloned while in the custody of the brokerages to commit fraud.

The court decided that the entities leading the exchanges were thus responsible for corroborating that the extracted crypto did not move or got taken out of the networks.

The feature would initiate its process via airdropping documents as NFT. This process would take effect in a pair of wallets initially employed by D’Aloia, which got stolen by fraudsters.

According to the law entity, Giambrone & Partners LLPthis action marks a new era for victims of crypto fraud to file complaints against unknown crooks in The United Kingdom. Last month, a court in the United States of America made a similar move and approved this kind of service via NFT.

Blockchain reporting Via NFTs

The approval of this service wouldn’t be the first time authorities carry out their activities over a blockchain. Last year, the United Kingdom Financial Conduct Authority and the Bank of England deployed a blockchain network to deal with regulatory reporting.

According to FCA Chief Executive Nikhil Rathi, by connecting to entities through blockchain and API technology and carrying out machine-readable and executable regulations, checks for compliance could get achieved in near real-time.

The team employed was made up of data scientists and analysts, with a £120 million budget for a more proactive approach to data collecting skills. Rathi also highlighted that there would be a stronger focus on data-heavy businesses.

Frauds in the Crypto World

As we all know, the value of digital assets depends entirely on supply and demand. That value could generate volatility that produces big profits or losses for investors. Crypto investments do not count on enough regulatory protection. This lack of protection contrasts with traditional financial items like stocks, bonds, and mutual funds.

Fraud related to digital assets has increased in recent years. The Federal Trade Commission in The United States of America received at least 6,800 complaints of digital asset investment scams from October 2020 to March 2021. This increase in crypto fraud forced The United Kingdom to improve the methods to deal with these problems under a legal framework.

By: Jenson Nuñez

Bitcoin (BTC) Fear & Greed Index Rises despite US Inflation Spike

Audy Castañeda
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Bitcoin (BTC) Fear & Greed Index Rises despite US Inflation Spike

Bitcoin (BTC) rose 4.77% on Wednesday to end a five-day losing streak. The breakout session came despite a spike in US inflationary pressure that left the NASDAQ 100 in the red for the session. The Bitcoin Fear & Greed Index surged from 15/100 to 18/100, with investors now awaiting US retail sales figures to be released on Friday.

On Tuesday, Bitcoin (BTC) was up 4.77%. Reversing a 3.18% loss on Tuesday, Bitcoin ended the day at $20,231. Bitcoin ended a five-day losing streak. A choppy session saw BTC drop to a low of $18,919 in response to US inflation figures before making a move.

BTC fell through the first major support level at $19,342 before reaching a high of $20,275. BTC broke through the first major resistance level at $19,821 to be range bound for the second major resistance level at $20,331 before pulling back.

The market’s reaction to the June inflation figures in the US tested investors’ appetite for riskier assets. However, with the Fed concerned about the impact of rate hikes on the US economy, investors pulled back ahead of US retail sales figures to be released tomorrow.

BTC tracked the NASDAQ 100 through the US session before a post-close breakout in the US market. On Wednesday, the NASDAQ 100 fell 0.15%.

Bitcoin Greed and Fear Index Rises Again to 18/100

This Wednesday, the fear and greed index increased from 15/100 to 18/100. The upside was modest relative to Bitcoin’s rally, with investor caution seeing the index pull back from a 20/100 return.

For the bulls, a move back towards the July high of 24/100 was positive, although headwinds persist. A likely change in the regulatory landscape, the threat of a US recession, and uncertainty over the Fed’s monetary policy continue to test investor confidence. The bulls will look for a return to the “fear” zone to signal a possible end to the crypto winter.

Bitcoin Price Action (BTC)

Currently, BTC is up 0.14% at $20,259. A range-bound start to the day saw BTC rally to an early high of $20,380 before falling to a low of $20,158.

BTC needs to avoid the pivot at $19,805 to target the first major resistance level (R1) at $20,695 and test resistance at $21,000. It would need a bullish session to support a breakout of $20,500.

A prolonged rally would test the second major resistance level (R2) at $21,165 and resistance at $21,500. The third major resistance level (R3) is located at $22,520. A drop through the pivot would bring into play the first major support level (S1) at $19,344.

Barring a prolonged sell-off, BTC should avoid below $19,000 and the second major support level (S2) at $18,453. The third major support level (S3) is located at $17,096.

Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. This Wednesday, Bitcoin was below the 50-day EMA, currently at $20,303. The 50-day EMA turned down to the 100 days EMA, with the 100-day EMA approaching the 200-day EMA; positive Bitcoin price. A further decline from the 50-day EMA to the 100-day EMA would bring $21,000 into play.

The bulls will look for a breakout of the 50-day EMA to target the 100-day EMA, currently at $20,610, and resistance at $21,000.

Based on trend analysis, Bitcoin would need a move through the May 30 high of $32,503 to target the March 28 high of $48,192. In the short term, the $25,000 resistance will likely be the first test if the uptrend resumes. For the bears, the June 18 low of $17,601 would be the next target.

By Audy Castaneda

EthicHub and Photographer Stefano Azario to Launch a Series of NFTs to Help Unprotected Communities around the World

Audy Castañeda
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EthicHub and Photographer Stefano Azario to Launch a Series of NFTs to Help Unprotected Communities around the World

It is expected that with the sale of 10 NFTs, USD 10,000 will be raised, of which 50% will go to the SPR “Cosechando Riqueza” cooperative.

Social enterprise EthicHub joined photographer Stefano Azario to support the creation of 10 copies of photographs of the artist in NFT format with the aim of bringing investors closer to contributing to various charitable causes for the unprotected of the world.

The purchase – sale of the products will be made through the Doingud platform that is based on the Polygon Blockchain technology. Each piece will have a value of USD 100.

How EthicHub Helps

One of the ways EthicHub operates is through donations to farming communities; therefore, in this project, 50% of the benefits will go to the SPR Cosechando Riqueza cooperative, in charge of organizing the small farmers of Chiapas in Mexico, which is responsible for carrying out the investment directly.

In addition, that will ensure that the funds are allocated to the rehabilitation of schools in communities in danger of collapse of their distribution, as was explained in the press release received.

“I was lucky enough to recently meet small coffee growers from Chiapas, Mexico, and I hope that this project will help improve their living conditions (…) therefore, what I seek is to create a broad group of socially sensitized collectors,” expressed the photographer Azario. With this project, both parties expect to raise at least USD 10,000.

Incentives to Investors

In order to encourage interested investors, buyers of the pieces will be raffled off for a trip with the company EthicHub to meet the coffee farming communities, as well as an NFT Prime and a printed copy with the artist’s signature.

In order for investors to be able to make the purchase effectively, they must have the USDC cryptocurrency in their wallet, since it is the only digital asset in which the sale will take place.

Similarly, EthicHub will teach a course for those investors who do not manage the platform but who still want to acquire a piece of this limited series of NFTs.

So far, only this round of sales will be carried out. However, if there is a good reach with sales, a second round will be carried out in September this year, which will also be limited and will also have a value greater than the current.

What Value Artists see in NFTs

In the context of the Blockchain Summit Latam (BSL) event, creators and artists who are joining the use of NFT technology to promote their art, expressed their points of view. Among the participants were Veroivo (Panama) and Norella Magdaniels (Colombia).

Panamanian Verónica Buruyides, better known as Veroivo, expressed that her first approach to the world of NFTs was during the Covid-19 pandemic since sanitary restrictions prevented her work from being carried out normally and technology provided a tool that it somehow allowed her to continue making art and exhibitions without breaking the sanitary rules.

Colombian Norella Magdaniels, on the other hand, remarked that NFTs make it possible to break down the barriers of the physical and allow art not to be tied to materials. The artist, in fact, is recognized for mixing both worlds, the physical and the virtual, when making art, so NFTs represent an “expansion” of her artistic sphere.

By Audy Castaneda

Celsius Filed for Bankruptcy through Chapter 11 and Recruits New Directors

Jenson Nunez
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Celsius Filed for Bankruptcy through Chapter 11 and Recruits New Directors

Celsius has just filed for Chapter 11 bankruptcy. The entity counts on $167 million cash in hand to strengthen various operations; the entity is also dealing with some lawsuits from an investor and former employee.

Celsius Network has revealed that it had filed for Chapter 11 bankruptcy; The entity expects to fix this situation and come back with a more solid background. It has taken a few other steps to help itself deal with such a process.

Celsius Network has officially filed for Chapter 11 bankruptcy, according to what the company revealed this news on July 14. This decision has been waiting for action for a long time, after many struggles to keep the entity afloat during the market decline earlier this year.

Celsius thinks this is the best method to lead the company in a good direction while it intends to come out of bankruptcy stronger and with a more solid background.

The financial rebuild of the entity took effect in the United States Bankruptcy Court for the Southern District of New York. This event marks the end of the struggle for Celsius and follows many measures taken by the entity to keep the financial structure alive.

The Entity Opened Up About its Motivation to File for Bankruptcy

The company said that this decision happened with the sole intention of providing the best chance to bring balance to the business, consolidate a comprehensive transaction procedure that maximizes value for all stakeholders, and emerge from Chapter 11 positioned for success in the crypto environment.

Celsius said it counts on $167 million in cash to assist various operations during the financial restructuring. It has also recruited new directors to develop this process.

A New Era for Celsius Network Begins

Celsius has been one of the most famous digital assets lending networks for many years. The bankruptcy filing would become a massive change, but the network also thinks it can come back from the ashes with a more solid body.

It noted in newly published FAQs that it would set up a strategy that could restore the financial activity in the platform, which should bring relief to customers and help the entity re-gain its position as a leading network in the market.

The insolvency has generated many headlines in the entity, which has, in turn, sparked regulatory scrutiny. Celsius will be expecting that it can fix its internal flaws as it begins the next stage of its existence.

Investors and a former employee have also filed legal complaints against the company. The latter explained that Celsius was leading a Ponzi scheme, while a crypto YouTuber has also enacted a lawsuit.

Celcius said this action was the right decision for its community and company. They explained that they have an experienced team to lead Celsius through this process.

The entity is still confident that once this situation gets left behind, the company will observe it as a crucial moment, where acting with resolve and confidence helped the community and consolidated the company as a lending network with optimal services.

By: Jenson Nuñez

Sri Lankan Central Bank Still Has Crypto Illegal Amid Economic Crashdown

Jenson Nunez
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Sri Lankan Central Bank Still Has Crypto Illegal Amid Economic Crashdown

The CBSL has already alerted the public regarding crypto transactions. Thousands of protestors took to the streets amid the economic Crashdown. Sri Lanka’s inflation rate is 54.6%, and the President has fled.

The Central Bank of Sri Lanka (CBSL) has revealed a notice on digital assets reiterating its position as the economic system continues its path to perdition. On July 12, Sri Lanka central bank released a public awareness notice in light of recent developments directly linked to virtual currency usage.

It described digital currencies as largely unregulated digital items that represent a value managed by private entities with the possibility of being tradable.

According to its previous position in notices in 2018 and 2021, the CBSL explained that it has not authorized or granted any licenses to any entity carrying out schemes that might include digital currencies. Therefore, crypto exchanges and mining operations remain forbidden in the affected nation.

No Crypto Access for Sri Lanka

The central bank came to remind the public that under the 2017 Foreign Exchange Act, electronic fund transfer cards (EFTCs) such as debit or credit cards got strictly forbidden to get applied to commit payments linked to digital assets transactions.

In simpler words, Sri Lankans got banned from using their bank cards to carry out transactional activities with crypto exchanges or entities tied to digital assets.

The CBSL concluded that cryptocurrencies were financial instruments without proper regulation with no oversight or safeguards for their movement in the affected nation. It rounded the bulletin off with a veiled alert message to the public over possible legal repercussions when using digital assets.

The warning comes amid weeks of political and economic stress in Sri Lanka which has seen tens of thousands of protestors invade the streets this week. Over the weekend, hundreds of protestors went to Sri Lankan President Gotabaya Rajapaksa’s residence in Colombo, extracting food supplies and disrupting the building.

On the other hand, a series of reports came under the public’s eye on July 13, highlighting that President Rajapaksa had abandoned the nation for the Maldives hours before he was due to step down the leadership.

Economic Crashdown in Sri Lanka

Inflation in the nation is currently at an all-time high peak of 54.6%, and household budgets got lengthened until they reached a point of no return. The central bank has raised interest rates to 15.5%, which means people’s savings served as mitigation as their debt repayments have skyrocketed.

Additionally, the state has applied various restrictions on purchasing fuel, plunging 22 million people into the worst humanitarian crisis experienced in at least 70 years. There are also food and medicine shortages in the nation.

There would not be a better time to give citizens access to crypto because they can hold stablecoins through this process as an inflation hedge; on the other hand, the central bank has other ideas to circumvent this situation.

Similar protests about a savage inflationary period have taken effect in Albania, Argentina, Panama, Kenya, Ghana, the Netherlands, Belgium, Italy, and China.

Later today, the U.S. would launch its inflation data for June, which might be worse than May’s at 8.8%.

By: Jenson Nuñez

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