Is Compass losing its way?
Good morning. Today we learn who's causing problems at CoinFLEX, see the CEO and CFO depart from Compass Mining, and get an official liquidation order for 3AC. All that and more today in the CT5!
Market Update (as of 8:06am ET):
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Top 5:
1. CoinFLEX says Roger Ver owes it $47M USDC as spat turns public. After halting withdrawals last week due to "extreme market conditions" and "continued uncertainty involving a counterparty", CoinFLEX has now named the counterparty as famed bitcoin investor Roger Ver. CoinFLEX allegedly gave Ver a $47 million uncollateralized loan that he personally guaranteed and was allowed to run negative equity on provided that he top up margin regularly. Mark Lamb, CoinFLEX's CEO, took to Twitter to call out Ver and confirmed that the company has served him with a notice of default. Ver denies these "rumors" and instead alleges that CoinFLEX owes him a substantial amount of money.
Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
— Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022
2. Compass Mining CEO and CFO resign amid 'setbacks and disappointments'. On Tuesday afternoon, CEO Whit Gibbs and Chief Financial Officer Jodie Fisher resigned from Compass Mining. The company, which offers bitcoin mining, hosting, and brokerage services, has appointed CTO Paul Gosker and Chief Mining Officer Thomas Heller as interim co-presidents and CEOs. Last week Dynamics Mining claimed that Compass owed them $600,000 and that Compass employees had attempted to break into one of their facilities in order to steal machines that Dynamics was hosting. In addition to recent issues, Compass lost access to $30 million in mining equipment when the Biden administration imposed sanctions on BitRiver, a Russian mining company. Dylan LeClair speculates below that a run on ASIC miners at Compass could occur as a result of turmoil at the company.
Physical ASIC run likely to occur with Compass.
— Dylan LeClair 🟠 (@DylanLeClair_) June 28, 2022
Missed power payments and increasing customer redemptions for machines.
Bad look, and judging by these spaces and my DMs a run has looks to have already started.
3. Three Arrows Capital liquidation ordered in British Virgin Isles. Earlier this week a court in the British Virgin Isles ordered the liquidation of Three Arrows Capital with Teneo Restructuring called upon to handle the insolvency. Three Arrows faced at least $400 million dollars in liquidations as the market plummeted after the collapse of Terra.
4. Crypto due diligence startup vying to bring transparency to ‘opaque’ industry. A startup from two TradFi veterans plans to bring transparency to the crypto industry after a market downturn that was largely driven by shady business practices. London-based perfORM conducts operational due diligence on crypto exchanges, blockchain venture capital and hedge funds, and other service providers on behalf of institutional investors. The company is also expanding into “hardcore deep dives” for potential job candidates at crypto firms and is looking into tokenomics related services as well.
5. Anchorage Digital announces Ethereum staking for institutions. The crypto bank and custody firm will now allow their institutional customers to stake ETH holdings and earn rewards. Anchorage will run a PoS validator on the Beacon chain that clients can stake with and according to Anchorage's announcement this will allow customers to stake ETH "with qualified custody".
Institutions can now stake #ETH with @Anchorage. Learn what institutions need to know about the ETH upgrades, why they should stake ETH & how they can collect rewards through Anchorage.
— Anchorage Digital (@Anchorage) June 28, 2022
Read more here ⬇️: https://t.co/0TkwoGjXHV
Updates and other stories:
- Montana storm knocks 75% of Marathon's active crypto mining fleet offline...Read More
- Babel Finance is losing top employees as client funds remain frozen...Read More
- Investment firm Cypherpunk Holdings sells all of its bitcoin and ether...Read More
Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN
External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings
Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.