The Bitcoin critic must return 100% of deposits and pay a USD 300,000 fine, as selling the bank was no longer financially viable. The employees of Hotbit do not know of any illicit activities, but its lawyers constantly communicate with the authorities to unfreeze its assets.
Cryptocurrency critic, gold advocate, and money manager Peter Schiff recently decided to liquidate his Euro Pacific Bank in Puerto Rico.
In 2020, the online boutique bank was under an international investigation into its account holders. At the time, the bank held USD 140 million with 8,000 depositors, including some suspects of tax evasion and money laundering.
The United States and four other countries investigated the bank to examine its involvement in these activities.
In June, the Puerto Rican authorities suspended the operations of Euro Pacific Bank, alleging serious insolvency grounds. The Commissioner of Financial Institutions (OCIF) has not determined the participation of the bank in the money in the money laundering and tax evasion of its clients.
Peter Schiff stated that he would not admit any legal wrongdoing by the bank or himself.
The Bitcoin critic must liquidate the bank and return 100% of the deposits, equivalent to around USD 66.7 million. According to the official transaction documents cited in The New York Times, he will also have to pay a USD 300,000 fine.
Since selling the bank was not an available possibility as it was no longer financially viable, he could only liquidate it.
The money manager also pointed out that this controversy tarnished his reputation in the banking industry. The gold advocate had previously said that he would accept Bitcoin if regulators allowed the sale of the bank.
Over the years, Schiff has participated in public disputes online, insisting that Bitcoin is not a store of value. He has said that it does not have an underlying price, which he considers crucial before turning an asset into money.
In contrast to Peter Schiff, the cryptocurrency industry has attracted his son, who sold all his silver stock to buy Bitcoin. The money manager thinks that Spencer must have undergone brainwashing for doing so.
Amid Investigations, Hotbit Suspends Its Withdrawal Operations
Cryptocurrency exchange Hotbit has had to suspend trading, deposits, withdrawals, and funding features. They alleged that a former employee working on an unauthorized project is now a suspect in criminal activity. However, the company confirmed that user assets are out of danger.
Hotbit explained that its employees did not know of any illicit activities, pointing out that its lawyers constantly communicate with the authorities. Concerning user funds, they said they would cancel unmatched open orders to avoid losing unfrozen assets.
Over the last few months, other cryptocurrency companies have stopped withdrawals. After the users of crypto lender Celsius could not take out funds, the firm filed for bankruptcy.
Likewise, Asian cryptocurrency exchange Zipmex recently announced that it would suspend transfers alleging market instability. The platform resumed withdrawals for altcoins like Solana (SOL), Ripple (XRP), and Cardano (ADA), gradually crediting them into user wallets.
By Alexander Salazar
