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Crypto Moves – Bitcoin and Ethereum fall; Voyager Digital obtains authorization to return $270 million to its customers

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Sunday, falling 1.08% to $22,975.50 as of 8:10 a.m. Riyadh time.

Ethereum, the second most traded cryptocurrency, was priced at $1,681.23, down 3.07%, according to data from Coindesk.

Voyager Digital obtains authorization to return $270 million to its customers

The Wall Street Journal reported on Thursday that Voyager Digital Holdings Inc. had been authorized to return $270 million in client funds to creditors, according to Reuters.

Judge Michael Wiles, who is overseeing Voyager’s bankruptcy, said the company presented a “sufficient basis” to support its claim that Metropolitan Commercial Bank customers should be allowed access to their custodial accounts.

Several crypto firms have filed for bankruptcy following the recent market turmoil, including Voyager.

Voyager estimated that it had over 100,000 creditors, assets worth $1 billion to $10 billion, and liabilities of the same amount.

The Federal Reserve and the Federal Deposit Insurance Corp. ordered the company to stop making misleading claims about protecting customer funds.

Additionally, the Metropolitan Commercial Bank provided the company with a deposit account, but its customers were not supported by the FDIC.

During the COVID-19 pandemic, crypto lenders like Voyager have grown rapidly, attracting depositors with high interest rates. Crypto markets, however, were negatively affected by the recent crash of two major tokens in May.

India Freezes Binance Assets

As part of an investigation into alleged compliance issues related to foreign exchange regulations, India’s Financial Crimes Enforcement Agency has frozen the assets of WazirX, an exchange linked to Binance, Reuters reported.

A total of 646.70 million rupees ($8.1 million) in assets have been frozen by the Federal Law Enforcement Directorate.

A spokesperson for WazirX, which is one of the largest virtual currency exchanges in India, said, “We have been fully cooperating with the Law Enforcement Branch for several days and have answered all their queries in a full and complete manner. transparent”.

“We do not agree with the allegations in the ED press release. We are evaluating our further course of action.

According to the ED, crypto exchanges are suspected of helping instant loan apps launder proceeds of crime by converting them into cryptocurrencies through their platforms.

Due to violation of central bank standards and engagement in predatory lending practices, the ED is investigating several shadow banks and their fintech companies for money laundering.

For alleged violations of exchange regulations, the ED began investigating WazirX last year.

According to Binance CEO Changpeng Zhao, he does not own shares of Zanmai Labs.

He tweeted: “On November 21, 2019, Binance published a blog post stating that it had ‘acquired’ WazirX. This transaction never came to fruition. Binance has never – at any time – held shares of Zanmai Labs.

He said that Binance only provides wallet services for WazirX as a technology solution.

Chinese-owned illegal online betting apps were investigated by the ED in 2021.

According to the ED, the laundered proceeds of crime worth around 570 million rupees were converted into cryptocurrencies using the Binance platform during the investigation.

(With contributions from Reuters)

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