'Nation should not compensate investors for crypto losses' says UK's Financia...
UK's top financial watchdog wants to bar investors from accessing government compensation in the event of crypto scams or not-at-fault financial loss. On Wednesday, Nikhil Rathi, CEO of the United Kingdom's Financial Conduct Authority, or FCA, issued the following statement to the Treasury Committee when asked about the risks of the much-unregulated cryptocurrency sector in the country:When we talk about the compensation scheme, we have to draw some pretty clear lines. I would suggest anything is crypto-related should not be entitled to compensations, and consumers should be clear about....
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0xfanfaron has vouched to personally compensate the firm's treasury for all trading losses. According to a recent blog post, 0xfanfaron, CEO of nonfungible tokens (NFTs) gaming project Ragnarok, apologized publicly for his missteps in leading the company. Ragnarok is a crypto startup that brought in $15.5 million worth of Ether (ETH) for gaming development in April through its first-ever NFT sale. However, 0xfanfaron disclosed:"We exchanged the ETH from the mint for 15.5 million in USD Coin. As it turns out, this was a good move in treasury management. But when ETH's price went down, I....
Deribit, a leading cryptocurrency futures and exchange, becomes the first victim of crypto hackers for November 2022 as its hot wallet was drained of $28 million. The cyber attack affected the exchange’s Bitcoin, Ethereum and USDC hot wallets. The company, however, has already given its assurance to immediately compensate the losses with the use of […]
Large Makerdao holders decided not to compensate the victims that were liquidated during the unexpected flash crash that took place on March 12, otherwise known as ‘Black Thursday.’ An aggregate total of 38 votes was cast and more than 65% of the governance portal participants voted for zero compensation. The day after March 12, otherwise known as ‘Black Thursday,’ the Makerdao project made headlines after between $4 to $6 million worth of the stablecoin DAI was left underwater due to an auction failure. A vote held this Tuesday indicates that the Makerdao project....
Binance’s policy allows investors to get compensation on trading losses due to system or internal issues but does not cover the “what could have been” situations. Outages in crypto exchanges have resulted in losses for investors trying to get out in time. While Binance has been proactive in neutralizing such situations, numerous investors are reportedly seeking damages due to the exchange’s inoperability. Speaking to CNBC, a Binance spokesperson highlighted the company’s policy that promises to compensate actual trading losses due to system or internal issues, but noted:“We do not cover....
Binance’s Changpeng Zhao (CZ) has said the exchange supports the proposal to compensate retail LUNA users ahead of larger investors. He also said the LUNA tokens received by Binance in exchange for a $3 million investment in Terra have not been sold or moved.
Binance’s LUNA Tokens Not Sold
After his exchange faced criticism for its handling of LUNA tokens, Binance CEO Changpeng Zhao (CZ) tweeted that any compensation for LUNA holders must prioritize protecting the interests of retail users. He said Binance has already taken the lead by electing to be compensated....