Crypto Flipsider News – Bahamas Takes FTX Assets; Binance Suspends Solana Deposits; Grayscale Trusts Hit Low; Twitter Closes Offices

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Bahamian regulators take control of seized FTX assets to protect investors

A week after the Securities Commission of The Bahamas froze the assets of the Bahamas subsidiary of FTX, the regulator confirmed the transfer of FTX’s digital assets to government-controlled digital wallets.

The regulator said it acted under the “authority of an Order made by the Supreme Court of The Bahamas.” It added that it would hold the assets for “safekeeping” while FTX goes through its bankruptcy filing.

According to the financial regulator, the action was taken last Saturday under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act) to protect the interests of clients and investors.

A Thursday filing, signed by the new FTX CEO John Ray, suggests that some of the unidentified transfers of digital assets from FTX reserves were directed by the financial regulator of the Bahamas.

The security regulator will work with regulators and authorities in multiple jurisdictions to address matters affecting the creditors for the best possible outcome.

Binance suspends deposits of Solana-based USDT and USDC stablecoins

Binance, the world’s largest cryptocurrency exchange by trading volumes, has temporarily halted deposits of Solana-based Tether (USDT) and USD Coin (USDC) stablecoins.

The announcement has raised concerns as Binance did not state reasons for the suspension. It merely said that they would remain suspended on the platform “until further notice.”

However, hours after stating that it “reserves the right in its sole discretion to amend or change or cancel this announcement” Binance resumed deposits for USDT. USDC remains temporarily suspended.

The concerns were compounded as other leading exchanges, including OKBitMex and ByBit followed suit. The USDT and USDC stablecoins were also suspended on their respective platforms.

While no official reasons have been stated, the suspension could be due to the close ties Solana had with the bankrupt FTX.

Grayscale’s Bitcoin and Ethereum trusts hit all-time premium lows

The shockwaves of the FTX collapse sent the prices of Bitcoin (BTC) and Ethereum (ETH) to two-year lows. As the prices of the two leading cryptos tumbled, so did their counterpart trust funds on Grayscale.

According to the dataamidst the market decline, Grayscale Bitcoin Trust Fund’s (GBTC) negative premium expanded to a whopping 42.7%. This is the lowest negative premium rate ever recorded by the fund.

Similarly, the negative premium of Grayscale’s Ethereum Fund dropped to 40.12%, also a record low. Ethereum Classic is the worst-performing crypto held by Grayscale, with its premium dropping to -66.95%.

Despite the declines in its trust funds, Grayscale has said that it was not affected by the recent collapse of Genesis Global Capital. Both companies are subsidiaries of the Digital Currency Group (DCG).

The drop in the value of GBTC, which owns 3.5% of the world’s Bitcoin, has been linked to the unwillingness of investors to invest in the market due to the recent FTX crash.

Twitter closes offices, staff resigns as users turn to decentralized alternatives

The Elon Musk takeover of Twitter has been nothing short of eventful. In his latest move, Twitter employees were alerted that all office buildings were temporarily closed and badge access suspended. No reason was given.

The close of offices comes after Elon Musk demanded that employees sign a pledge to work “long hours at high intensity.” Twitter employees were asked to sign or clear their desks by November 17th. The closed office report comes a day after.

Twitter employees reacted to the demand with almost 50% resigning. They took the second option of clearing their desks and taking three months’ severance pay. Employees are not the only ones leaving, as users have also been saying goodbye to Twitter.

As users leave the platform, Mastodon, a decentralized alternative to the bird app, has seen a surge in new registrations. In the first two weeks of Musk’s reign, Mastodon reportedly added over a million new members.

The recent happenings confirm Buterin’s prediction that Twitter could face more competition or become a better platform depending on how Musk runs the company.

Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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