Legal highlights this week:
- CoinFlex seeks legal action to recover $84 million from a large customer
- Texas closes down operations for crypto miners during extreme heat wave
- Elon Musk backs out of $44 billion deal to buy Twitter
- The United Kingdom releases their first regulated British Pound stablecoin
The fintech company Blackfridge just launched "Poundtoken," which is the very first regulated stablecoin in Britain. Poundtoken is backed by Pound Sterling (GBP) and known by the ticker "GBPT." It was designed thoughtfully to guarantee a seamless process where users can simply redeem for GBP at any given moment.
Blackfridge is regulated by the Isle of Man Financial Services Authority, and is required to hold GBP in reserve equal to the total value of stablecoins issued at all times. Alan Sun, the CEO of Poundtoken - assures the public of the stablecoin's safety. He mentioned how GBPT offers "both the reassurance of strict British financial regulations paired with speed, transparency, and integrity of the blockchain.” Poundtoken allows people complete access to their assets, so they can pay in GBPT internationally and at any given time. This stablecoin will act as a bridge to allow transactions across multiple chains. Backed by investment from Gate Ventures and FunFair Ventures, Blackfridge is driving the decentralization of financial services in the United Kingdom.
Crypto exchange Coinflex plans to recover $84 million from Roger Ver, the former CEO of Bitcoin.com. Lamb issued a notice of default for Ver who initially planned to liquidate his own account. Ver kept pushing to send funds to the exchange to take physical delivery of the future positions. However, CoinFlex later found out that he was just "hoping for a bounce in the market that never materialized."
Coinflex suspended withdrawals after Ver failed to amass $47 million, and is currently talking with investors, creditors, and others to create temporary liquidity for depositors so that they can withdraw through the "Locked Funds Plan." However, due to the uncertainty of the recovery plan - the founders have decided to raise funds in USDC. Coinflex's new token, Recovery Value USD - was created to improve liquidity in the original or modified format. They hope to make up to 10% of the total balance available for withdrawal within a week.
Elon Musk sought to buy Twitter in April, but decided to pull out - citing that Twitter failed to present sufficient information upon request about the number of fake and spam accounts. He now also aims to close the agreement, since he was accused of multiple breaches. Twitter has recently decided to pursue legal action to fortify the agreement's cancellation process.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk."
Bret Taylor, Chairman of Twitter
Bret Taylor, Twitter's chairman - was brutally honest in his tweet about the possibility of a long legal battle with Musk. This is not the first time Musk has made unreasonable requests, which elicited occasional responses from the social platform. The board of directors initially agreed to Musk's acquisition of Twitter, but Musk decided to disengage. However, the Twitter board is set on closing the deal no matter what.
Bitcoin miners in Texas were paid to shut down operations due to possible rolling blackouts caused by blazing temperatures. Temperatures in Texas shattered records over the weekend with a below triple digit heat. Temperature records were shattered over the weekend with triple-digit heat, reaching 110F at one point in central Texas. The state grid operator issued a warning to the public to reduce their power consumption.
According to Lee Bratcher, President of Texas Blockchain Association - almost all industrial scale Bitcoin mining operations have been halted since the start of the week. This will help free up 1,000 megawatts of electricity which accounts for 1% of the total grid capacity in Texas. Blackouts aren't new to Texas Bitcoin miners, especially during harsh winter storms.
New crypto adoption:
- Shanghai allocates $1.5 billion to metaverse development fund to boost economic growth
- GameStop releases the public beta version of its NFT marketplace
- Online brokerage M1 Finance announces that they'll be launching crypto trading accounts
- South Korea is prepared to test its CBDC with commercial banks
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