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XP, a major Brazilian broker, is the latest financial firm to provide its customers with crypto trading services. The new cryptocurrency trading platform, XTAGE, launched yesterday, and it allows users of XP’s mobile app to trade Bitcoin and Ether.
The crypto sector’s first $1bn deal, which was announced during the market highs last year and would have seen Galaxy Digital acquire crypto custodian BitGo for $1.2bn, has been terminated. BitGo is now seeking $100m in damages in wake of the failed agreement.
Forecasts from law firm Kirkland & Ellis, which were filed yesterday, show that embattled cryptocurrency lender, Celsius, could run out of cash by October 2022. Celsius reportedly owes depositors $2.8bn more in crypto than it is currently holding.
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Brazilian Broker XP Launches Crypto Trading Platform
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XP, a major Brazilian broker, is the latest financial firm to provide its customers with crypto trading services. The new cryptocurrency trading platform, XTAGE, launched yesterday, and it allows users of XP’s mobile app to trade bitcoin and ether
Xtage CEO, Marcos Horie, announced during the opening bell event at Nasdaq that the company has received “tons of requests” from its clients who wanted to start investing in cryptocurrencies via XP’s existing ecosystem.
XP is not the first Brazilian company to venture into the world of cryptocurrencies, however, as several other high-profile South American banks have also recently launched crypto trading features.
Latin America’s largest investment bank, BTG Pactual, launched its highly demanded crypto platform named Mynt a few weeks ago. Digital banking unicorn Nubank and fintech app PicPay are among other entities within the region that now have cryptocurrency offerings.
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BitGo to Sue Galaxy Digital for $100M
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The crypto sector’s first $1bn deal, which was announced during the market highs last year and would have seen Galaxy Digital acquire crypto custodian BitGo for $1.2bn, has been terminated. BitGo is now seeking $100m in damages in wake of the failed agreement.
In a press release issued yesterday, BitGo stated that it “intends to hold Galaxy Digital legally responsible for its improper decision to terminate the merger agreement with BitGo, which was not scheduled to expire until December 31, 2022, at the earliest and to not pay the $100 million reverse break fee it had promised back in March 2022”.
Following this, BitGo has hired litigation powerhouse Quinn Emanuel Urquhart & Sullivan, LLP to take appropriate legal action. A representative from the firm, R. Brian Timmons, was quoted as saying: “Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more”.
On Monday, Galaxy Digital announced its plans to terminate the proposed acquisition citing that BitGo failed to provide audited financial statements for 2021 by July 31, 2022, as part of the acquisition agreement. Galaxy originally announced that it was acquiring BitGo in May 2021 as part of plans to go public in the United States. The acquisition was expected to go through between Q2 and Q4 2022.
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New Court Documents Show Celsius is Running Out Of Cash
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Forecasts from law firm Kirkland & Ellis, which were filed yesterday, show that embattled cryptocurrency lender, Celsius, could run out of cash by October 2022. Celsius reportedly owes depositors $2.8bn more in crypto than it is currently holding.
Celsius entered Chapter 11 bankruptcy last month after cascading crypto prices forced it to halt withdrawals. Following this, Celsius has been undertaking a restructuring process and examining the different avenues to pay back creditors. Initially, documents show that there was a $1.2bn hole in Celsius’ balance sheet, with the firm reporting $4.3bn in assets and $5.5bn in liabilities.
However, recent documents show that Celsius has $2.8bn less in crypto than is owed to depositors.
As of the start of August, Celsius had an estimated $130m in cash balance. However, Kirkland & Ellis projects that Celsius will be nearly $40 million in the red by the close of October.
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Chart of the Week: No. of Daily Transactions, Sep 21 – July 22
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CryptoCompare research shows that the number of daily transactions executed in centralized exchanges has trended downwards over the last 8 months, emulating the larger market downturn.
During the market peak in November 2021, an average of 10.8mn daily transactions occurred across the five evaluated exchanges. This has gradually trended downwards to an average of 3.98mn transactions in the month of July. A spike in transactions also occurred during two recent periods of market turmoil, first on May 11th during the crash of Terra, and second when Celsius froze withdrawals on June 13th.
This year, various cryptocurrency providers, such as Coinbase and BlockFi, have had to lay off hundreds of staff members, in some cases up to a fifth of their workforce, as they look to establish a position which would see them survive the recent crypto crash.
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State of the Crypto by Top Tier Exchange Volume
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