Dapper Labs CEO’s bullying and lavish lifestyle hurt company, ex-staff claim
Dapper Labs CEO Roham Gharegozlou has drawn criticism for his alleged role in exacerbating corporate turmoil amidst layoffs and a landmark NFT lawsuit. The company is behind the wildly popular and controversial NBA Top Shot Moments NFT collection. Former employees claim his bullying of staff and lavish spending contributed to high employee turnover. Dapper Labs laid off 22% of its workforce in November and another 20% in February.
The accusations come as Dapper Labs is being sued for securities regulation violations, with a US federal judge deeming the case worthy to proceed on February 22. If the lawsuit is successful, it could have industry-wide implications for the NFT space.
NOW READ: Blockchain analytics firm Elliptic cuts 10% of staff as crypto winter bites
Silvergate Bank hints at poor capitalisation, delays annual report filing
Crypto-friendly Silvergate Bank has hinted at poor capitalisation as it addressed the delaying of its annual report filing with the Securities and Exchange Commission. In a notification of late filing, Silvergate told the SEC that it was “analysing certain regulatory and other requirements.” This comes weeks after Reuters reported that the bank had facilitated a transfer in the millions from Binance.US to Binance Global. The allegation carries significant legal weight, given Binance Global does not carry a licence to operate in the US. Silvergate is currently one of the most shorted assets in the tradfi market, with 71% of outstanding shares sold short.
France sets crypto regulations to align with EU’s MiCA
France’s Financial Market Authority is setting new requirements for crypto firms that want to register in the country to better align with “new European rules,” according to AMF Chairwoman Marie-Anne Barbat-Layani. France’s new regulations will particularly focus on beefing up cybersecurity to the ire of crypto purists who feel it may stifle the industry. The rule change comes as the EU is gearing up to vote on the new Markets in Crypto Assets regulations in April.
Coinbase CEO cites liquidity issues in BUSD delisting
Coinbase CEO Brian Armstrong justified his company’s decision to suspend Binance USD on Wednesday, citing liquidity issues. In an appearance on Bloomberg TV, Armstrong expressed concern over the recent New York Department of Financial Services order for stablecoin issuer Paxos to cease minting BUSD. The order comes as regulators increasingly scrutinise Paxos’s relationship with exchange Binance, with the SEC claiming Paxos was selling BUSD as an unregistered security. Armstrong also used the appearance to speak out on the SEC’s ongoing enforcement push, calling for US regulators to create clear rules for crypto firms to follow.
NOW READ: Banking regulators won’t ban crypto, they’ll ‘starve’ it
Nexo sued again
Nexo has become the target of yet another lawsuit. A California resident has filed a legal complaint against the firm, alleging a “fraudulent inducement” by the company for users to take out loans. Plaintiff John Cress is the latest in a long line of claimants seeking damages from Nexo, including several US states. Nexo was charged by the SEC in January for failing to register its Earn Interest product, to which the company agreed to pay $45 million in fines. Additionally, an international team of authorities raided Nexo’s Bulgarian headquarters on January 12, resulting in four individuals being charged with “forming an organised crime group” related to unlicensed banking and money laundering.
We cannot allow the events of last year to leave an indelible mark on the digital assets space.
— Antoni Trenchev (@AntoniNexo) March 1, 2023
No use beating around the bush – our top priority, as an industry, is rebuilding trust and transparency. 🧵
Chainlink launches new development platform Chainlink Functions
Oracle network Chainlink is launching a new development platform, Chainlink Functions. A beta version is available on Ethereum and Polygon testnets. The new platform will accompany its Oracle service, which provides data services such as live price feeds. Chainlink Functions is an attempt to bridge the gap between the currently dominant Web2 infrastructure with Web3 smart contracts to make it easier for developers to build applications.
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