Financial problems outweigh prices

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On Monday, financial troubles at two cryptocurrency companies prevailed over altcoin prices. – Photo: Shutterstock

In the battle for attention, legal and financial troubles for cryptocurrency companies prevailed over altcoin prices on Monday.

Crytpo Tornado Cash mixer and lender Hodlnaut issues overshadowed a somewhat choppy day in cryptocurrency trading that saw few notable gains. But digital coins still performed well, as several remained in the green.

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Treasury Department Imposes Sanctions

The US Treasury Department has imposed sanctions on Tornado Cash, alleging the crypto mixer is enabling North Korean hackers and other illicit groups to launder billions of dollars.

In a statement, US Secretary of State Antony Blinken said in a statement that Tornado Cash had laundered part of more than $600 million stolen from the North Korean state-backed Lazarus Group, which was sanctioned by the United States in 2019.

North Korea, along with Russia, are the most active states in crypto-related crime.

In a separate press release, Treasury said Tornado Cash has been used to launder more than $7 billion in virtual currency since the company was founded in 2019.

The regulator added the Tornado Cash website and 45 wallets to the US sanctions list and banned Americans from doing business with them.

XLM to USD

Doubtful mixer

A crypto mixer aggregates digital assets to protect the identity of their owners.

“Despite public assurances to the contrary, Tornado Cash has repeatedly failed to impose effective controls intended to prevent it from routinely laundering funds to malicious cyber actors and without basic measures to address its risks,” Brian Nelson, under -Secretary to the Treasury in charge of terrorism and financial intelligence. , said in a statement.

A senior Treasury official told Bloomberg that Lazarus laundered about $450 million through Tornado Cash and that the service was used to steal $100 million from the Harmony blockchain’s Horizon Bridge in June.

It is unknown where Tornado Cash is based.

Hodlnaut freezes withdrawals

Meanwhile, Singapore-based Hodlnaut has become the latest crypto lender to freeze withdrawals. The company cited “recent market conditions” – an excuse used by other companies – in a statement.

Hodlnaut’s troubles followed those of fellow crypto lenders Celsius Network and Voyager Digital as well as hedge fund operator Three Arrows Capital, which all filed for bankruptcy, and other companies. Celsius, Voyager and Three Arrows, also known as 3AC, ran into trouble when LUNA and TerraUSD collapsed.

“Hodlnaut is a relatively small service, so we don’t expect this news to have a noticeable impact on the price of major assets, especially as the markets are showing a structure that is, arguably, more bullish than they are. were when the crypto credit crunch started in June. Mikkel Morch, executive director of crypto investment fund ARK36, told Bloomberg.

Bitcoin Surpasses $24,000

Crypto prices did not seem too affected on Monday. FLOW, which has been hot at times lately, has been a notable winner.

Throughput up 12%

The coin rose around 12% when conventional markets closed in North America. (All numbers are based on data from CoinMarketCap.)

Decred fell 6% after slightly more than doubling on Friday.

Bitcoin (BTC) surpassed $24,000 at one point, but ended below that mark during conventional trading hours. But ether (ETH), the main coin of the Ethereum blockchain, slightly outperformed its biggest rival.

Hodlnaut has frozen all withdrawals, token swaps and deposits. The company said it was trying to stabilize cash and preserve assets, and hopes to share a recovery plan soon.

Thousands join lawsuit against SEC

Meanwhile, More than 70,000 Ripple investors have joined a class action lawsuit against the U.S. Securities and Exchange Commission (SEC), a representative attorney says XRP wallet.

John Deaton said on Twitter on Sunday that people of diverse backgrounds from all 50 US states, all US territories and 141 countries have joined forces in the legal dispute against the regulator.

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