Brian Armstrong

Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram

Recipients need to download a Coinbase Wallet to receive the funds, but the crypto exchange says they’ve simplified the process for less tech-savvy users.

A new feature from Coinbase Wallet allows for the transfer of crypto through a link that can be sent through some of the most popular social media sites and messaging apps as the crypto exchange looks to make its service accessible to a wider market.

“Users can now send money on any platform that they can share a link,” Coinbase said in a Dec. 5 blog post, naming apps like iMessage, Telegram, WhatsApp, Facebook, Instagram and TikTok.

There’s no payment fee when sending USD Coin (USDC), a U.S. dollar stablecoin Coinbase co-launched in 2018 with its issuer, Circle.

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Coinbase to help UK on Web3 hub as Treasury reportedly revives blockchain taskforce

Brian Armstrong will give suggestions to the U.K. on regulations, taxes and ensuring collaboration between the banking and FinTech sectors.

The United Kingdom could “turbocharge” its crypto sector and be an “innovation hub for the Web3 economy” as part of a vision laid out by cryptocurrency exchange Coinbase.

The comments by the exchange coincide with an April 17 Sky News report that the U.K. Treasury is set to revive the Asset Management Taskforce with a focus on developing crypto regulation in collaboration with the private sector.

In an April 16 blog post, Coinbase emphasized the firm is working “seriously” in the U.K. and Europe. It praised the progressive regulatory efforts taking place in the region and added that its CEO, Brian Armstrong, would speak at a London fintech conference and provide nine recommendations on how the U.K. can “cement its place” as a Web3 hub.

“The U.K. has been one of our fastest-growing user markets, and the E.U. is this week set to adopt the Markets in Crypto Assets (MiCA) regulation, which will bring in a new licensing regime across the 27 member states,” the post reads. It added:

“In short, things are happening in Europe that are edging the region ahead and, when it comes to embracing the digital economy, the region is preparing for a seismic change in how it uses and thinks about money.”

The post also included a brief rundown of Armstrong’s nine recommendations for the U.K. government.

The list includes ensuring collaboration between the banking and fintech sectors, developing a cross-departmental strategy for tech innovation and economy digitization along with quickly establishing a regulatory framework for crypto.

Additionally, topics such as developing “a regulatory framework that promotes stablecoins,” providing clarity on tax treatment for crypto assets and creating a plan to “bring de-centralized ID (DiD) to fruition,” were also outlined by Coinbase

Leading up to his April 18 speech, Armstrong revealed via Twitter on April 16 that he met with the U.K.’s economic secretary and city minister, Andrew Griffith.

The Coinbase CEO stated that he raised concerns over the de-banking of some crypto firms in the U.K. and the negative implications of the 24-hour “cooling off” for investments in financial product promotions that came into effect under the “Financial Promotion regime” in February.

UK Treasury to revive Asset Management Taskforce

Under the guidance of City Minister Griffith, the Treasury will soon revive the Asset Management Taskforce,according to a report from Sky News U.K.

The Asset Management Taskforce was initially established in 2017 and was designed to encourage greater communication between the government, the fintech and crypto sectors and the local financial regulator, the Financial Conduct Authority (FCA).

It appears the body has been relatively inactive over the past couple of years.

Related: Bank of England preparing for greater role of tokenization in finance, official says

However, Sky News claims that talks will take place this week between the Treasury, FCA, fund management bosses and other stakeholders as the government looks for ways to bolster the local crypto asset sector.

Notably, on April 17 Griffith spoke on the first day of the UK FinTech Week conference in London and emphasized the government is focused on “fostering innovation by making the U.K a safe jurisdiction for crypto asset activity.”

“We set out plans in our wide-ranging consultation published in February, and we want to proactively support the use of distributed ledger technology and tokenization where it makes sense,” he said.

Elon Musk-led petition to halt AI development divides tech community

Brian Armstrong said that any tech development should not be halted based on the fears of a few.

Tesla CEO Elon Musk and Apple co-founder Steve Wozniak were signatories on an open letter signed by more than 2,600 tech industry leaders and researchers. The open letter called for a temporary halt on any further artificial intelligence (AI) development.

The petition shared concerns that AI with human-competitive intelligence can pose serious hazards to society and mankind. It urged all AI firms to “immediately cease” developing AI systems that are more potent than Generative Pre-trained Transformer 4 (GPT-4) for at least six months. GPT-4 is a multimodal large language model created by OpenAI — the fourth in its GPT series.

The petition, although supported by many, has divided the larger tech community over the halt of developments. Coinbase CEO Brian Armstrong was among many notable names that opposed the petition.

Armstrong, in a tweet, said that “committees and bureaucracy won’t solve anything.” He added that no designated “experts” can decide on this issue, and not everyone in the tech industry agrees with the petition.

Armstrong said that any new technology poses a certain amount of danger, but the goal should be to keep moving forward. He added that centralization in the decision-making would bring no good.

“Don’t ever let fear stop progress, and be wary of anyone trying to capture control in some central authority.” Armstrong tweeted.

Brian Merchant, a columnist at the LA Times, called the petition led by Musk an “apocalyptic AI hype carnival.” He added that many of the stated concerns are “robot jobs apocalypse” stuff.

Satvik Sethi, former Web3 executive at Mastercard, called the petition a “non-proliferation treaty but for AI.” He added that many of the popular signers on the list have a deeply personal vested interest in the AI field and are likely just “trying to slow down their counterparts so they can get ahead.“

Coinbase CEO ponders banking features after Silicon Valley Bank crisis

Coinbase CEO Brian Armstrong says the exchange has previously considered adding features to become a neobank.

The broader cryptocurrency community continues to debate the ongoing fallout following the closure of three major American banks, with calls for neobank services for the industry on the cards.

Silicon Valley Bank (SVB), which has traditionally served startups across several innovation sector industries, was shuttered by California’s Department of Financial Protection and Innovation on March 10.

The reasons surrounding the closure are still coming to light, but the news caused shockwaves through the industry, primarily driven by USD Coin (USDC) issuer Circle having over $3.3 billion of its $40 billion reserves locked up in the bank.

Signature Bank, which also serves cryptocurrency firms, met a similar fate on March 12. The New York Department of Financial Services took possession of the bank to prevent further bank runs as customers scrambled to pull funds from SVB and Signature.

The closure of SVB was particularly hard-hitting, with the USDC stablecoin briefly losing its $1 peg driven by major uncertainty around the effect Circle’s exposure would have on its ability to manage redemptions.

Related: Silicon Valley Bank collapse: Everything that’s happened until now

USDC has seen its peg creep back up to the $1 mark after Circle CEO Jeremy Allaire announced that the stablecoin issuer has lined up new banking partners in the United States.

Given the tumult of the past few days, the cryptocurrency ecosystem is now taking a closer look at ties to traditional finance institutions that serve fiat currency deposits, withdrawals and monetary flows.

Coinbase CEO Brian Armstrong took to Twitter on March 13, saying the American cryptocurrency exchange has previously considered features that could potentially bypass or serve to bridge gaps exposed in the latest mainstream banking failure.

Ryan Lackey, chief strategy officer of cryptocurrency insurance firm Evertas, questioned whether the exchange had considered offering neobanking services to high-net-worth individuals and businesses:

Armstrong replied by saying that Coinbase would need to add a number of features and opened the door for comments in the thread:

“Definitely something we’ve thought about. Need a few more features like outbound wires, multi-user support etc. Non-fractional reserve “banking” is definitely looking more attractive right now.”

Coinbase confirmed that it had around $240 million held at Signature Bank on March 10 but expects to recover all of its cash holdings.

The closure of SVB and Signature Bank caused fears of widespread runs on regional banks across the United States over the weekend. A Bloomberg report also suggests that the United States Federal Reserve and Federal Deposit Insurance Corporation are weighing up the creation of a fund to cover deposits at ailing banks.

Coinbase CEO reiterates that ‘staking’ products aren’t securities

The SEC is broadening its investigation into crypto exchanges and has targeted staking products for potential securities violations.

Coinbase CEO Brian Armstrong has attempted to quell speculation that his exchange’s staking products should be classified as securities — upping the ante in the ongoing debate around crypto regulations with the United States Securities and Exchange Commission.

In a televised interview with Bloomberg on March 1, Armstrong said, “Our staking product is not a security,” referring to cryptocurrencies that can be staked directly on the exchange to generate yields. He continued:

“Customers never turn their assets to Coinbase, for instance. And we really just are providing a service that passes through those coins to help them participate in staking, which is a decentralized protocol.”

Armstrong’s explanation mirrors the guidance provided by Coinbase’s chief legal officer, Paul Grewal, who told shareholders last month that the exchange’s staking products fundamentally differ from the yield products the SEC is targeting. Grewal was referring specifically to the SEC’s recent enforcement action against rival exchange Kraken, which settled with the securities regulator for allegedly failing to register its staking-as-a-service program. As part of its settlement, Kraken agreed to pay $30 million in disgorgement, prejudgment interest and civil penalties.

After settling with Kraken, the SEC has turned its attention to Coinbase’s staking products. Specifically, the regulator is investigating whether Coinbase’s staking products meet the legal definition of a security under the U.S. Securities Act.

Related: Crypto Biz: Coinbase has a lot at stake

Coinbase has been hemorrhaging money during the crypto winter, posting a $557 million loss in the fourth quarter. Revenues plummeted 75% year-over-year as trading volumes dried up.

After falling 86% in 2022, Coinbase’s share price has rebounded sharply this year. The stock is currently trading around $64, having gained over 90% in 2023. 

Coinbase CEO invites DC residents over for ice cream and crypto talk

Brian Armstrong said he had about an hour at the Dirksen Senate Office in Washington, D.C. to “chat about crypto” and enjoy low-sugar food at the building’s snack bar.

Brian Armstrong, CEO of United States-based cryptocurrency firm Coinbase, is looking for lawmakers and regulators to discuss regulatory clarity in the crypto space.

In a Feb. 13 tweet, Armstrong put a call out for anyone with access to the Dirksen Senate Office in Washington, D.C. to meet him at the building’s snack bar and “chat about crypto.” According to the Coinbase CEO, he was looking for “low sugar options” amid the selection of soft serve ice cream and toppings.

“I’m in Washington D.C. and had a meeting canceled,” said Armstrong. “If anyone wants to come chat about crypto and how we get crypto legislation + regulatory clarity this year.”

Brian Armstrong at the Dirksen Senate Office Building on Feb. 13. Source: Twitter

Armstrong’s presence in D.C. followed the Securities and Exchange Commission announcing a $30-million settlement with Kraken on Feb. 9, in which the firm agreed to shut down its staking program for U.S. users. The Coinbase CEO argued in a Twitter thread responding to rumors that eliminating staking would be a “terrible path for the U.S.” On Feb. 12, he released a statement saying Coinbase would defend staking “in court if needed.”

Related: Coinbase CEO announces documentary on cryptocurrency and exchange

The Coinbase CEO’s call to senators, House representatives and other D.C. residents preceded U.S. lawmakers with the Senate Banking Committee preparing to hold a hearing on Feb. 14 exploring the impact of a crypto market crash. Representative Maxine Waters, ranking member of the House Financial Services Committee, has also called on the committee’s leadership to hold another hearing on the collapse of FTX in which former CEO Sam Bankman-Fried could testify.

Coinbase will ‘happily defend’ staking in US courts, says CEO

Coinbase executives claim that staking is not a security under the US Securities Act or Howey test.

Crypto exchange Coinbase’s executives are standing up for its crypto staking services, claiming it cannot be classified as a security, and threatening to bring the matter to the courts in the United States.

Coinbase CEO Brian Armstrong posted on Twitter that the company will “defend this in court if needed.” The move follows the agreement reached by crypto exchange Kraken with the Securities and Exchange Commission on Feb. 10 to stop offering staking services or programs to clients in the country.

According to the SEC, Kraken failed “to register the offer and sale of their crypto asset staking-as-a-service program,” which the commission now qualified as securities. Aside from the service’s halt, Kraken agreed to pay $30 million in disgorgement, prejudgment interest and civil penalties.

Coinbase’s chief legal officer, Paul Grewal, weighed in on the issue in a blog post, claiming that “staking is not a security under the US Securities Act, nor under the Howey test.” Grewal also noted: 

“Trying to superimpose securities law onto a process like staking doesn’t help consumers at all and instead imposes unnecessarily aggressive mandates that will prevent US consumers from accessing basic crypto services and push users to offshore, unregulated platforms.”

Grewal argues that staking fails to meet the four elements of the Howey test: investment of money, common enterprise, reasonable expectation of profits and the efforts of others. “The Howey test comes from a 1946 Supreme Court case – and there is a separate discussion to be had about whether that test makes sense for modern assets like crypto,” he noted. 

“The purpose of securities law is to correct for imbalances in information. But there is no imbalance of information in staking, as all participants are connected on the blockchain and are able to validate transactions through a community of users with equal access to the same information.” Further, the executive wrote:

“Blockchain technology can spur significant economic growth in the US and staking is a safe and critical aspect of that technology. […] But regulation by enforcement that does nothing to help consumers and drives innovation offshore is not the answer. Getting it right on staking matters. “

The SEC decision on crypto staking sparked criticism. In a statement titled “Kraken Down,” Commissioner Hester Peirce publicly rebuked her own agency over the shutdown of Kraken’s staking service. Peirce argued that regulation by enforcement “is not an efficient or fair way of regulating” an emerging industry.

Coinbase will ‘happily defend’ staking in US courts, says CEO

Coinbase executives claim that staking is not a security under the US Securities Act or Howey test.

Crypto exchange Coinbase’s executives are standing up for its crypto staking services, claiming they cannot be classified as a security and threatening to bring the matter to the courts in the United States.

Coinbase CEO Brian Armstrong posted on Twitter that the company will “defend this in court if needed.” The move follows the agreement reached by crypto exchange Kraken with the Securities and Exchange Commission on Feb. 10 to stop offering staking services or programs to clients in the country.

According to the SEC, Kraken failed “to register the offer and sale of their crypto asset staking-as-a-service program,” which the commission now qualified as securities. Aside from the service’s halt, Kraken agreed to pay $30 million in disgorgement, prejudgment interest and civil penalties.

Coinbase’s chief legal officer, Paul Grewal, weighed in on the issue in a blog post, claiming that “staking is not a security under the US Securities Act, nor under the Howey test.” Grewal added: 

“Trying to superimpose securities law onto a process like staking doesn’t help consumers at all and instead imposes unnecessarily aggressive mandates that will prevent US consumers from accessing basic crypto services and push users to offshore, unregulated platforms.”

Grewal argues that staking fails to meet the four elements of the Howey test: investment of money, common enterprise, reasonable expectation of profits and the efforts of others. “The Howey test comes from a 1946 Supreme Court case – and there is a separate discussion to be had about whether that test makes sense for modern assets like crypto,” he wrote. 

“The purpose of securities law is to correct for imbalances in information. But there is no imbalance of information in staking, as all participants are connected on the blockchain and are able to validate transactions through a community of users with equal access to the same information.” Further, the executive wrote:

“Blockchain technology can spur significant economic growth in the US and staking is a safe and critical aspect of that technology. […] But regulation by enforcement that does nothing to help consumers and drives innovation offshore is not the answer. Getting it right on staking matters.”

The SEC decision on crypto staking sparked criticism. In a statement titled “Kraken Down,” Commissioner Hester Peirce publicly rebuked her own agency over the shutdown of Kraken’s staking service. Peirce argued that regulation by enforcement “is not an efficient or fair way of regulating” an emerging industry.

Community urges Coinbase to relist XRP as CEO fights for staking

The community wonders whether delisting XRP in 2020 was due to Coinbase’s willingness to protect customers from “government overreach.”

Amid Coinbase cryptocurrency exchange standing up for crypto staking and economic freedom, the online community has also urged the company to support XRP (XRP).

On Feb. 9, Coinbase’s chief legal officer Paul Grewal claimed that Coinbase’s staking program is not affected by rival exchange Kraken shutting down its staking services. The executive argued that Kraken’s staking platform was “essentially offering a yield product,” while Coinbase’s staking services are “fundamentally different and are not securities.”

Coinbase CEO Brian Armstrong also took to Twitter on Thursday to declare that the exchange will continue to oppose the government when it comes to protecting services like staking. He complained about the lack of clear staking regulations, adding:

“We will keep fighting for economic freedom — our mission at Coinbase. Some days being the most trusted brand in crypto means protecting our customers from government overreach.”

The community was quick to react to Armstrong’s “economic freedom” ambitions, with many criticizing Coinbase for staying away from XRP after delisting the cryptocurrency in 2020. The decision to suspend XRP trading came in response to the United States Securities and Exchange Commission (SEC) taking legal action against Ripple, alleging that the firm violated securities laws by selling XRP tokens.

“Is delisting XRP a good example of Coinbase protecting customers from government overreach?” one crypto enthusiast asked on the Twitter thread.

The community has also once again pushed the #relistXRP hashtag on Twitter, with many people stressing that XRP has not been declared a security yet, following more than two years of Ripple’s legal battle with the SEC.

“If Coinbase really wanted to show they are standing up against the SEC they would simply #relistXRP I mean seriously it has not even been declared a security! Coinbase and Brian Armstrong are nothing but a bunch of cowards,” one industry observer argued.

Related: Getting rid of crypto staking would be a ‘terrible path’ for the US — Coinbase CEO

Many crypto activists also referred to a recent legal win involving the sale of LBRY Credits (LBC) tokens, bringing parallels with XRP. On Jan. 30, the SEC admitted on record that the sale of LBRY tokens in the secondary market doesn’t constitute a security, implying that players like Coinbase can offer LBC trading without any legal issues.

“Coinbase and others should immediately list XRP after LBRY’s legal team and Deaton succeeded in getting the SEC to confirm on the record that secondary market sales of cryptos, for example by exchanges, do not constitute securities transactions,” Twitter user Eviszen wrote.

Launched in 2012, XRP is a major cryptocurrency native to the Ripple protocol, aiming to provide financial tools like a cross-border payment method. Despite being involved in a major legal battle with the SEC for the past few years, XRP has remained one of the world’s top cryptocurrencies by market value. At the time of writing, XRP is the sixth largest crypto asset by value, with a market capitalization of nearly $20 billion, according to data from CoinGecko.

Santas and Grinches: The heroes and villains of 2022

Here’s a list of the 12 individuals who had the most impact — for better or worse — on the crypto industry this past year.

From an outside perspective, 2022 has been a rollercoaster ride for crypto. The market reached a total valuation of $3 trillion during the bull market of 2021, only to scale back to its current level of around $810 billion. While this poor performance can be partly attributed to the pervading macroeconomic environment — compounded by rising inflation rates and the ongoing Ukraine-Russia conflict, among other factors — one cannot deny the role that the recent slew of insolvencies has had on the sector. 

That said, below is a list of arguably the most notable heroes and villains who have undeniably impacted this rapidly evolving industry over the past year.

The heroes

Changpeng Zhao

At a time when some of the biggest players in crypto crumbled, Changpeng Zhao, also known as “CZ,” ensured that his Binance crypto exchange held its own, even playing a role in the collapse of its closest rival, FTX.

CZ has refused to tie down the crypto exchange to the regulatory framework of one country or several. As a result, governments across the globe aren’t too big on Binance’s approach and repeatedly pressure the exchange with regulatory requests. However, despite the continued stress, Binance has grown in influence and stature. Amid a harsh crypto winter when staff layoffs were commonplace, CZ claims to have not made any major layoffs, with the exchange even looking to hire more people in the near term.

Lastly, CZ’s digital presence has grown over the past year, with a worldwide Twitter following of more than 8 million. Moreover, the Canadian entrepreneur recently announced that he has invested a whopping $500 million in Twitter.

Brian Armstrong

It’s been an up-and-down year for Coinbase CEO Brian Armstrong, with the firm laying off several employees while experiencing a significant drop in its stock price. However, despite the setbacks, he has continued to keep his chin up. All through the year, Armstrong has been a vocal critic of the United States Securities and Exchange Commission and its chairman, Gary Gensler, claiming the SEC has stifled innovation by forcing crypto entities to adhere to extreme reporting requirements. He was also critical of the sanctions of Tornado Cash’s smart contract addresses by the United States Department of Treasury, pledging to fund a lawsuit to annul the government’s actions.

Armstrong’s commitment to decentralization and transparency was once again on full display earlier this year when he announced that Coinbase would rather halt its Ether (ETH) staking services than censor sanctioned Ethereum transactions.

Senators Cyntia Lummis and Kirsten Gillibrand

While some lawmakers remain oblivious toward the crypto market, Senators Cynthia Lummis and Kirsten Gillibrand have taken the time to understand the true financial and social potential of this rapidly maturing technology.

Earlier this year, the pro-crypto duo tabled a bill called the Lummis-Gillibrand Responsible Financial Innovation Act, proposing a comprehensive framework for the governance of digital currencies. The bill was put forth in response to the SEC’s lack of clarity in the space and segregates cryptocurrencies into three categories: commodities, securities and ancillary assets.

The bill notes that cryptocurrencies categorized as commodities should be regulated by the Commodity Futures Trading Commission, with the SEC responsible for securities and ancillary assets.

Representative Tom Emmer

Representative Tom Emmer is another voice who relayed strong support for the crypto industry this past year. Recently, the politician pointed to SEC Chair Gary Gensler’s crypto oversight strategy, calling it “indiscriminate and inconsistent.” Moreover, he revealed that since January, he has been approached by the heads of several prominent crypto entities who have complained to him that Gensler’s reporting requirements are onerous and unfair, calling them unnecessary and biased against the crypto market.

In a recent tweet, Emmer called for Gensler to testify before Congress and explain his criticized regulatory approach. He also added that “He [Gensler] declined to provide Congress with the information requested in the letter, which would’ve informed Congress of the apparent inconsistencies in Gensler’s approach that caused him to miss Terra/Luna, Celsius, Voyager, and FTX.”

The entire Ethereum core development team

After years of delays, Ethereum’s highly anticipated transition to a proof-of-stake consensus layer finally came to fruition earlier this year. Known as the Merge, it was the first time a project of Ethereum’s size successfully completed a technical maneuver of this scale.

More than 100 developers worked on making the network’s transition from the energy-intensive proof-of-work consensus layer to proof-of-stake a seamless reality.

Click “Collect” below the illustration at the top of the page or follow this link.

The villains

Sam Bankman-Fried

It’s no surprise to see this name on the list. Sam Bankman-Fried, the former FTX CEO, was recently at the helm of one of the largest crypto collapses in recent memory. It is alleged that the MIT graduate was unaware of the inner workings of the relationship between FTX and Alameda Research, a sister company helmed by his close associate Caroline Ellison.

Since his arrest by Bahamian authorities on Dec. 12, Bankman-Friend’s future is unclear. Many people would like to see him and close associates like Sam Trabucco, Gary Wang, Constance Wang and Nishad Singh punished for their alleged crimes. Bankman-Fried was extradited to the United States on Dec. 22 and released on a $250 million bail bond. Many pundits have continued to speculate on his future and whether SBF will now be spending the rest of his days in jail, quite possibly with many of his close associates.

Do Kwon

Another person on the list is Do Kwon, co-founder of Terra, a blockchain platform designed to make payments more efficient. Upon its launch, Terra’s algorithmic stablecoin, TerraUSD (UST), attracted 40 million users, with the project raising $32 million from investors, including Arrington XRP Capital and Polychain Capital. It also won support from mainstream companies like Korean ticketing firm Ticket Monster and travel operator Yanolja.

Following Terra’s collapse, a whopping $45 billion of capital was wiped from the crypto market within seven days. It is estimated that the crash affected more than 200,000 South Korean investors, leading several groups to file a class-action lawsuit against Kwon. The South Korean government recently revealed that it is pursuing criminal charges against Kwon, with similar lawsuits filed against him in the United States and Singapore.

In September, the Seoul Southern District Prosecutors’ Office announced that it had started proceedings to revoke Kwon’s passport while placing his name on Interpol’s red notice list. Despite the gravity of the situation, the Terra co-founder seems to be making little to no effort to hide from authorities.

Su Zhu and Kyle Davies

Three Arrows Capital (3AC) was founded in 2012 by Su Zhu and Kyle Davies. Before its collapse, it reportedly had $18 billion in assets. In March, blockchain analytics firm Nansen suggested that 3AC managed about $10 billion in crypto alone. However, speculation about uncollateralized borrowing emerged as early as Q1 2022.

Related: 5 cryptocurrencies to keep an eye on in 2023

Before their fall from grace, Davies and Zhu had become well-known names in the crypto space, with Zhu amassing more than 500,000 Twitter followers. 3AC had stakes in several popular projects, including Aave, Avalanche, Luna, Deribit and Ethereum. As of July 2022, the crypto hedge fund’s bankruptcy filings show the firm owes $3.5 billion in creditors’ claims.

Lastly, it should be noted that throughout 2021 and 2022, Zhu and Davies lost more than $3 billion, putting 3AC’s collapse on the list of the most significant hedge-fund trading losses of all time.

Alex Mashinsky

Alex Mashinsky is the founder and former CEO of Celsius Network, which was one of the largest crypto lending platforms in the world. In June, Celsius abruptly froze customer withdrawals, swaps and transfers, citing client safety and extreme volatility. Shortly after, the company filed for Chapter 11 bankruptcy, revealing a $1.2 billion hole in its accounts.

At the time of its downfall, Celsius had $4.3 billion in assets, with losses estimated at $5.5 billion. Just one month before Celsius filed for bankruptcy, Mashinsky withdrew more than $10 million in cryptocurrency. Several other company executives — including former strategy chief Daniel Leon and technology chief Nuke Goldstein — were also found to have taken similar actions.

Before freezing customer funds, Maskinsky’s Celsius was one of the most prominent players in the crypto market, holding over $8 billion in client loans and almost $12 billion in assets under management. The firm had more than 1.7 million customers, with each being offered returns of up to 17% on their crypto deposits.

Stephen Ehrlich

Stephen Ehrlich is the founder and CEO of cryptocurrency brokerage Voyager Digital. Days after the Celsius bankruptcy, Voyager announced that it would be halting all customer withdrawals and trading. It filed for Chapter 11 bankruptcy four days later. It soon became apparent that one of the reasons for Voyager’s collapse was a staggering $670 million loan to 3AC.

To make matters worse, all of the company’s loans were included in an investor call just a few weeks before the company’s collapse, with documents showing that the loans had been collateralized in tiny portions. Other red flags worth highlighting include an accusation by the United States Federal Deposit Insurance Corporation that Voyager illegally claimed the agency insured it. At its peak, Voyager had a whopping $5.8 billion in deposits in its coffers. More recently Binance outlined its intention to buy out the troubled company.

The past year has been rocky for the industry. As the new year approaches, can the market bounce back even stronger and forge a better future for all its participants? Time will tell.