30 June

The liquidation of crypto hedge fund Three Arrows Capital was ordered by a British Virgin Islands court on Monday. Partners from New York-based Teneo Restructuring have been called in to handle the insolvency.

Crypto brokerage Voyager Digital (VOYG.TO) issued a default notice to 3AC this week after the fund failed to make required payments on loans of 15,250 bitcoins and $350 million in USDC. 3AC has been an active investor in the digital asset industry in recent years with investments across non-fungible tokens, decentralized finance, layer 1 blockchain firms and crypto companies.”

“MakerDAO is currently voting on a proposal aimed at helping it weather the bear market and utilize untapped reserves by investing 500 million Dai (DAI) stablecoins into a combination of United States treasuries and bonds.

This proposal represents a major step for MakerDAO, as it signals its intent to extend beyond the crypto realm and earn yield from traditional “safe” financial investments with its flagship DAI. Once an option is chosen, European wholesale lender Monetalis will provide MakerDAO access to the financial instruments it wants.

As TradFi is seeing interest rate increase due to the FED. Maker protocol working with TradFi to take advantage of the high interest would be able to strengthen its revenue model.”

“A Wednesday meeting secured a final deal on anti-money laundering legislation for crypto transfers and largely overturned a proposal from the EU Parliament to impose laundering checks on all payments to private wallets.

The final proposals will mean customer identity needs to be verified for even the smallest crypto transfers, if it’s between two regulated digital wallet providers – but payments to unhosted private wallets will largely be left out of laundering checks.

It strikes the right balance in mitigating risks for fighting money laundering in the crypto sector without preventing innovation and overburdening businesses.”

See Also: US Infrastructure Law’s Reporting Requirements for Crypto Brokers Likely to Face Delay
See Also: Governments May Restrict Foreign Access to Their CBDCs, Riksbank Official Says

“The scaling solution allows developers to launch application-specific blockchains on the Polygon network. Avail can be deployed on any Ethereum Virtual Machine (EVM)-compatible blockchain.

The new product would allow developers to access blockchain data “off-chain,” meaning they would not need to continually check data from the network for an application deployed on Polygon. Applications built on Avail would give developers the ability to update, fork and change how their blockchains handle execution.

This is critical for [decentralized finance] and game developers that may need to patch bugs, experiment with execution or just reduce their dependencies on external chains.”

See Also: Polkadot Chief Gavin Wood Announces Blockchain Governance Upgrade

Private and publicly listed crypto miners owe up to $4 billion in debt used to finance the construction of gargantuan facilities across North America. As the value of the miners’ output dramatically falls along with the price of bitcoin (BTC), they have to make tough decisions about how to survive – including selling off hard-earned coins and equipment.

Bitcoin mining revenue in dollar-denominated terms per kilowatt hour (kWh) has more than halved since the start of the year. Miners that borrowed money to finance their expansion plans are now having to make tough decisions. Many of those loans are underwater today and borrowers need significant revenues beyond the financing to remain current.

Older machine models are becoming unprofitable and turned off – the hashrate decreased by 11% between June 12 and June 27. Miners have been selling bitcoin to exchanges at record paces. In May, bitcoin miners sold over 100% of their monthly production, compared to 30% between January and April.

In due course, we’ll see some defaulted loans, unclaimed miners, and acquisition targets.

Miners’ difficulties in paying their installments engender risk for the overall ecosystem, as they leave lenders exposed to defaults. According to Van Huis, lenders BlockFi and NYDIG have given out “horrible credit” that miners will have a hard time repaying given current market conditions.

Industry sources agreed the industry will consolidate in the coming months as weaker players are forced to offload assets.”