LATEST NEWS

Crypto Prices Surge After US Banking Collapse

Cryptocurrency prices have surged as President Joe Biden reassured Americans about the safety of the country's banking system following the collapse of Silicon Valley Bank and Signature Bank. Bitcoin and Ether both rose over 10% on the back of the announcement. Former Head of Market Insights at Genesis, Noelle Acheson, said that Bitcoin's value as a decentralised, seizure-resistant store of value has increased significantly as it contrasts with the fragility of traditional banking. Altcoins such as Binance's BNB, Cardano's ADA, and Polygon's MATIC also increased. Circle's USDC stablecoin jumped over 5% to come back within range of its U.S. dollar peg. Coinbase shares gained 4.7%, and MicroStrategy added over 9%.

The US Federal Reserve is Conducts Review of Silicon Valley Bank after the Bank's Failure.

The Federal Reserve is conducting a review into the supervision and regulation of Silicon Valley Bank after its forced closure due to liquidity troubles. Vice Chair for Supervision Michael Barr is leading the review, with results set to be released publicly by May 1. The bank's collapse followed major losses on government bond investments and bank runs from depositors. It marked the second major US bank to collapse in the same week, following Silvergate's parent company announcing a voluntary liquidation, and was followed by the bust of Signature Bank. US President Joe Biden reassured Americans that the banking system is safe and outlined plans for stronger banking oversight and thorough investigations.

@federalreserve announces that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1: https://t.co/wQ39KLiwHE

— Federal Reserve (@federalreserve) March 13, 2023

Signature Bank Closed by New York Authorities to ‘Protect the Economy’

New York-based Signature Bank, which serves a number of crypto firms, has been shut down by regulators and taken over by the New York Department of Financial Services. The move was made to protect the US economy and strengthen public confidence in the banking system. The Federal Reserve is backstopping all depositors of Signature Bank and depositors will be made whole. Shareholders and certain unsecured debt holders will not be protected and the senior management has also been removed. Silvergate Bank, another crypto-friendly bank, recently announced that it would shut down and voluntarily liquidate in light of recent industry and regulatory developments.

Terraform Labs, Do Kwon Faces Probe from FBI

The US Justice Department is reportedly investigating the collapse of the TerraClassicUSD (USTC) stablecoin which contributed to a $40 billion wipeout in the Terra ecosystem last May. The founder of Terraform Labs, Do Kwon, is at the center of the investigation, despite being believed to be hiding out in Serbia. The investigation covers similar ground to a lawsuit filed against Terraform Labs and its founder by the US Securities Exchange Commission. The probe does not necessarily mean that charges will be filed. Additionally, New York prosecutors are understood to be investigating a series of chat-group investigations from former members at Jump Trading, Jane Street, and Alameda Research.