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Silvergate discontinues exchange network

Silvergate announced that it is discontinuing its digital assets’ payment network, claiming the termination is a risk-based decision. The move comes after the bank’s stock fell over 59% in the past five days due to fears of a potential bankruptcy. 

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Silvergate announced that it is discontinuing its digital assets’ payment network, claiming the termination is a risk-based decision. The move comes after the bank’s stock fell over 59% in the past five days due to fears of a potential bankruptcy. 

A second decision on the same day from United States Judge Michael Kaplan said Silvergate had to return $9.8 million deposited by BlockFi. As per documents posted on the website of BlockFi’s restructuring adviser, the court ordered the bank to immediately release the funds following an agreement between the two companies in November 2022.

BlockFi is one of the crypto firms affected by the FTX collapse in November 2022, as is Silvergate. The crypto bank had liquidity issues due to the crypto bear market before being hit by significant outflows in the fourth quarter of 2022, leading to a $1 billion net loss.

Silvergate reportedly borrowed $3.6 billion from the U.S. Federal Home Loan Banks System, a consortium of 11 regional banks across the United States that provide funds to other banks and lenders to mitigate the effects of a surge in withdrawals.

In a report published by the U.S. Securities and Exchange Commission, the digital asset bank highlighted the heavy outflows of deposits and outlined steps to maintain cash liquidity, including wholesale funding and selling debt securities. The crypto bank faces class-action lawsuits over its relationship with FTX and Alameda Research.

Fears that a liquidity crisis could result in bankruptcy protection spiked this week after Silvergate postponed filing its annual 10-K financial report. Within 24 hours of the announcement, crypto firms Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos announced they would scale back their partnerships with the bank in some capacity. MicroStrategy and Tether joined several firms in publicly denying any meaningful exposure to the bank.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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