Fraudsters impersonate US State Department, MicroStrategy buys-sells-buys Bitcoin, Midas Investments shuts down due to heavy losses

Source: AdobeStock/beeboys

Get your daily roundup of cryptoasset and blockchain related news by investigating the stories flying under the radar of today’s crypto news.
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Security news

  • The United States Oregon Division of Financial Regulation (DFR) has warned cryptocurrency investors to beware of various scams within the crypto space, such as a recent one involving a website claiming to be run by the US Department of State. The fake website said it was working to get FTP extension the client’s assets were returned and asked for the investor’s FTX username and password, along with other account information.

Investment news

  • Technology company MicroStrategy purchased approximately 2,395 bitcoins (BTC) for $42.8 million in cash at an average price of approximately $17,871 per bitcoin between November 1 and December 21 through its MacroStrategy branch, according to a US Securities and Exchange Commission filing (SEC). On Dec. 22, he sold BTC for the first time, approximately 704 BTC for $11.8 million, expecting the loss to offset earlier capital gains. On Dec. 24, MacroStrategy acquired another 810 BTC for $13.6 million, at an average price of about $16,845 per bitcoin, he said.
  • Investment firm Investments of Midas is shutting down its platform after incurring significant losses in 2022, according to an announcement. In spring 2022, Midas’ decentralized finance (DeFi) portfolio suffered a cumulative loss of $50 million (20% of $250 million in assets under management (AUM)), he said and added: “After Celsius and FTP extension events, the platform suffered the withdrawal of more than 60% of the AUM, creating a large capital shortfall. Based on this situation and the current CeFi [centralized finance] market conditions, we have reached the difficult decision to close the platform”.
  • Bitcoin miner Argo Blockchain he said he would sell his Helios mining rig at the US-based crypto financial services company Digital Galaxy for $65 million and refinance asset-backed loans with a new $35 million loan with Galaxy. The deals will reduce total debt by $41 million, he said. Argo will retain ownership of all mining machines and Galaxy will house the Argo fleet Bitmain S19J Pro by Helios.
  • The cryptocurrency market is projected to grow by $1.47 billion in the period 2022-2026, found a ResearchAndMarkets.com relationship. The market is being driven by increased investment in digital assets, increased availability of crypto wallets, and increased FinTech spending. The study identifies the growing inclination towards digital currency as one of the main reasons driving the growth of the cryptocurrency market in the coming years, while the growth of blockchain technology and the acceptance of cryptocurrency by retailers will lead to considerable demand in the market , he has declared.

Exchange news

  • Cryptocurrency exchange Kraken said Wednesday that it will exit the Japanese market in January 2023. It said “Kraken has decided to cease its operations in Japan and deregister from Financial services agency (JFSA) as of January 31, 2023. […] Current market conditions in Japan, combined with a weak cryptocurrency market globally, mean the resources needed to further grow our business in Japan are not warranted at this time.”

Legal news

  • Cryptocurrency exchange Twins and its founders Tyler and Cameron Winklevoss are facing a class action lawsuit in the United States for alleging that the company sold interest-bearing accounts without registering them as securities, Bloomberg reported. Investors accused the company and its founders of fraud and violation of the Exchange Act in a proposed class action filed Tuesday in federal court in Manhattan, it said.

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