Bankrupt cryptocurrency lender Celsius Network has started allowing withdrawals of assets in certain custody accounts. The company stated in an earlier blog post that eligible users could withdraw all funds in their accounts up to a specific limit.

Silvergate Bank has announced it will be discontinuing its Silvergate Exchange Network (SEN), a platform used by institutions to move money to and from cryptocurrency exchanges.

Leading stablecoin issuer Tether has reportedly used shadowy intermediaries, falsified documents, and shell companies to regain access to the traditional banking system.´

 Top stories in the Crypto Roundup today:

• Celsius Reopens Withdrawals for Some Custody Accounts
• Silvergate Bank Discontinues Platform Used to Move Money to Crypto Exchanges
• Tether Reportedly Used Falsified Documents to Open Bank Accounts
• Digital Asset Investment Products’ AUM Keeps Rising

Celsius Reopens Withdrawals for Some Custody Accounts

 Bankrupt cryptocurrency lender Celsius Network has started allowing withdrawals of assets in certain custody accounts. The company stated in an earlier blog post that eligible users could withdraw all funds in their accounts up to a specific limit.

Celsius obtained approval to process certain withdrawals in January through several U.S. court orders. The company published a list of names in February of users who could withdraw assets previously locked on the platform, saying at the time it had permission from the U.S. Bankruptcy Court in the Southern District of New York to distribute 94% of each user's assets.

Withdrawal eligibility was contingent on specific criteria, such as transfers having to be less than $7,575 when initially made, and users having enough assets on the platform to cover withdrawal fees.

Eligible users, Celsius said, are being notified of the steps needed to facilitate their withdrawals.

Silvergate Bank Discontinues Platform Used to Move Money to Crypto Exchanges

Silvergate Bank has announced it will be discontinuing its Silvergate Exchange Network (SEN), a platform used by institutions to move money to and from cryptocurrency exchanges.

The bank, which does businesswith major crypto firms such as Binance US, Kraken, Gemini, and ErisX (before the latter's acquisition by Cboe) among its clients, said the decision was based on risk considerations.

SEN is a 24/7 instant settlement service that allowed the bank's clients to conduct transactions between each other at any time, including nights and weekends.

Silvergate has this past week announced that it would delay filing its annual report due to questions from auditors. The bank also revealed that it is under investigation by bank regulators and the US Department of Justice, and said that its ability to continue as a "going concern" over the next year is in doubt.

Several cryptocurrency exchanges, including Coinbase, dropped Silvergate last week amid these developments.

Tether Reportedly Used Falsified Documents to Open Bank Accounts

Leading stablecoin issuer Tether has reportedly used shadowy intermediaries, falsified documents, and shell companies to regain access to the traditional banking system.´

According to a report from the Wall Street Journal, one of the intermediaries, a major USDT trader in China, attempted to “circumvent the banking system by providing fake sales invoices and contracts for each deposit and withdrawal.”

The report also points to other entities, including “shadow bank” Crypto Capital Corp and a company called “Deniz Royal Dis Ticaret Limited Sirketi,” which were used for Tether to access the banking system.

Ultimately, it says, both Tether and Bitfinex were “able to open at least nine new bank accounts for shell companies in Asia over nine days in October 2018.”

 Tether’s Chief Technology Officer, Paolo Ardoino, has said the report contained a “ton of misinformation and inaccuracies,” without giving specifics. In a statement, Tether said the report was “wholly inaccurate and misleading,” and said both Tether and Bitfinex have “world-class compliance programs” and that they adhere to legal requirements.

Digital Asset Investment Products’ AUM Keeps Rising

Bitcoin and Ethereum-based products experienced a surge in assets under management (AUM) with a 6.06% and 1.72% increase, respectively. The rise marked the highest market share for BTC-based products since June 2022.

This has resulted in a market share of 70.5% and 24.0% for these products. The AUM for products offering exposure to other digital assets and of products offering exposure to multiple assets at once saw a rise of 14.7% to $1.16 billion and 2.33% to $413 million, respectively.

For further insight, make sure to check out  CryptoCompare’s latest Digital Asset Management Review.

State of the Crypto by Top Tier Exchange Volume

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