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Daily Crypto News | July 9th, 2022

1. Elon Musk Backs Out Of Twitter Purchase Deal

According to a filing with the Securities and Exchange Commission, Elon Musk, the CEO of Tesla and SpaceX, has withdrawn his $44 billion offer to purchase Twitter.

Musk made an offer to buy the social media company in April, but his recent comments have led to a lot of “would he or would he not” conjecture about his impending acquisition. And as of today, we can say with certainty that he won’t. Musk’s legal team informed the company that he would cancel the merger agreement, which would have allowed Musk to entirely dominate the platform by purchasing all outstanding shares.

“Mr. Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the merger agreement, and is likely to suffer a company material adverse effect,” says an SEC filing by Musk’s attorneys.

2. US Encourages Japan’s Crypto Exchanges To Cease Working With Russia

As part of what appears to be the nation’s economic penalties, representatives of the US government are said to have encouraged Japan’s authorized cryptocurrency exchanges to stop doing business with Russia.

The Financial Times reported on Thursday that American diplomats asked some of the 31 cryptocurrency exchanges and miners with business licenses in Japan to cease operations there. According to reports, the Financial Services Agency, or FSA, of Japan demanded that the various exchanges cut all links with Russia.

Following Russia’s invasion of Ukraine in February, cryptocurrency regulation has come under fire from a number of lawmakers and regulators in countries that are putting sanctions on the country. In March, the FSA and the Finance Ministry of Japan declared that crypto companies handling transactions involving blacklisted people or organizations in Russia and Belarus would face hefty fines or jail time.

3. Solana Is Sued For Being Unregistered Security

The cryptocurrency Solana (SOL), according to a lawsuit filed on July 1 in the U.S. District Court for the Northern District of California, is an unregistered securities. Mark Young, a California resident and SOL investor, is the lead plaintiff in the case. He is suing on behalf of all investors who bought Solana tokens starting on March 24, 2020.

Solana Labs Inc., the Solana Foundation, Solana Labs CEO Anatoly Yakovenko, Multicoin Capital Management LLC, Kyle Samani, and Falconx LLC are the defendants in the complaint. According to the lawsuit, the defendants knowingly and willfully misrepresented the overall circulating supply of Solana and its decentralized structure. It continues by mentioning the “devastating outages” and network congestion that can occur on Solana’s blockchain network.

4. Fed Vice Chair Demands Further Crypto Regulation

Greater crypto regulation was demanded today by the vice chair of the Federal Reserve, who pointed out that some investors have recently incurred substantial losses.

Lael Brainard, governor of the U.S. central bank, stated on Friday at the Bank of England Conference in London that the cryptocurrency market is still too small to represent a “systemic danger” to the established financial system.

“We are closely monitoring recent events where risks in the system have crystallized and many crypto investors have suffered losses,” said Brainard. “Despite significant investor losses, the crypto financial system does not yet appear to be so large or so interconnected with the traditional financial system as to pose a systemic risk.”

5. Blockchain.com Suffers A $270M Loss From 3AC Exposure

The troubled cryptocurrency hedge firm Three Arrows Capital Ltd. (3AC), which recently filed for Chapter 15 bankruptcy, has been linked to losses by another cryptocurrency startup. After reviewing a letter to shareholders written by the CEO Peter Smith, Coindesk reported that Blockchain.com is the most recent company to bear the brunt of 3AC’s consequences.

Smith stated that the company suffered a $270 million loss as a result of the 3AC incident but emphasized that Blockchain.com is financially stable.

“Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com,” read Smith’s letter to shareholders.

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