Wednesday, Mar 22, 2023

Latest Crypto News: CryptoQuant Analyses Proof-Of-Reserves Audit Of Binance; FTX Asks For Authorisation To Sell Subsidiaries

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Latest Crypto News: CryptoQuant Analyses Proof-Of-Reserves Audit Of Binance; FTX Asks For Authorisation To Sell Subsidiaries

Here are the latest developments from the world of crypto over the past few days

A report by Blockchain analytics company, CryptoQuant, has analysed the most recent proof-of-reserves audit of Binance, the world’s largest cryptocurrency exchange.

Binance published the results of an external auditor’s BTC proof-of-reserves study. According to the study, 97 per cent of Binance’s assets serve as security for its BTC liabilities (client deposits). When the BTC lent to clients is taken into consideration, the collateralisation rises to 101 per cent.

Following the failure of FTX, centralised exchanges have come into attention over the past month, none more so than Binance, which has been frantically trying to reassure users and investors that it has enough reserves and is fully backed.

On-chain data indicates that Binance’s ETH and Stablecoin reserves are not currently acting in an “FTX-like” manner.

“Our analysis should not be interpreted as a favourable opinion of Binance as a company, the ecosystem of the BSC/BNB networks, or the BNB token. It is merely a sign that the amount of BTC Binance exchange says it holds as liabilities at the moment the PoR report was conducted makes sense, according to on-chain data,” Crypto Quant said in the report.

Lawsuit Filed Against Silvergate Bank

A lawsuit has been filed in the California Southern District Court against Silvergate Bank, Silvergate Capital Corporation, and Silvergate CEO Alan Lane regarding accounts held by troubled cryptocurrency businesses FTX and Alameda Research.

The lawsuit seeks to hold Silvergate liable for its alleged responsibilities in transferring FTX customer contributions into Alameda’s bank accounts, which sparked panic in the cryptocurrency market and ultimately resulted in both businesses filing for bankruptcy.

Plaintiff Joewy Gonzalez brought the action on his own behalf and that of others who shared his circumstances. The lawsuit claims that the plaintiff used the FTX exchange to deposit his savings in cryptocurrency because the company assured users that they could “keep assets securely as they increased in value, cash them out, or trade them for other assets”.

Amber Group Raises $300 Million Funding

Fenbushi Capital US, a venture capital firm specialising in Blockchain technology, has led a new $300 million Series C investment round for Amber, the business announced on Twitter on December 15.

“Today, we’re announcing that Amber Group has completed a $300M Series-C round, led by Fenbushi Capital US and joined by other crypto-native investors and family offices,” Amber Group said in a Tweet.

Due to FTX’s failure, Amber opted to hold its prior Series B funding and move on with Series C. This led to the timing of the new funding round.

Amber was working on finishing an extension of its Series B at a $3 billion valuation when FTX failed. As was previously reported, the business aimed to close the Series B investment round by January 2023 by raising $100 million. Amber had amassed $50 million as of mid-December 2022.

FTX Asks For Authorisation To Sell Subsidiaries

The now-bankrupt cryptocurrency exchange FTX has asked for the permission of a federal court to authorise the sale of a number of its entities, including the LedgerX derivatives arm based in the United States.

Attorneys for FTX said in a statement submitted to the Bankruptcy Court of Delaware that the sale of some subsidiaries or the search for other strategic transactions was a top priority for the company’s present management.