The company behind the tether stablecoin has increasingly been lending its own coins to customers rather than selling them for hard currency upfront, the Wall Street Journal reported. The shift adds to risks that the company may not have enough liquid assets to pay redemptions in a crisis. Tether Holdings Ltd. says it lends only to eligible customers and requires that borrowers post lots of “extremely liquid” collateral, which could be sold for dollars if borrowers default. These loans have appeared for several quarters in the financial reports that Tether shows on its website.
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British Virgin Islands
A creditor list of bankrupt crypto hedge fund Three Arrows Capital puts the interconnected nature of the industry on display, with lenders ranging from some of the biggest digital-asset firms to the wife of co-founder Kyle Davies, Bloomberg reported. At the top is Digital Currency Group Inc., the parent company of crypto brokerage Genesis, which filed a $1.2 billion claim against Three Arrows, according to people familiar with the matter who reviewed a court filing. Chen Kaili Kelly, the wife of Davies, also filed a claim of about $66 million, the filing shows.
The liquidation process of Three Arrows Capital is going to move to Singapore next, if lawyers representing the British Virgin Islands (BVI)-based liquidators are successful, the Straits Times reported Friday.
A federal bankruptcy court has frozen the assets of Three Arrows Capital, the once-prominent crypto hedge fund that managed as much as $10 billion in assets until it fell into liquidation last month, the Washington Post reported. In an emergency hearing Tuesday, Judge Martin Glenn of the Southern District of New York granted a motion allowing liquidators to “transfer, encumber, or otherwise dispose” of any Three Arrows Capital assets located in the United States. In addition, the court authorized subpoenas for the founders, whose whereabouts are unknown.
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Singapore’s top financial regulator reprimanded the cryptocurrency hedge fund Three Arrows Capital, saying that it supplied false information to officials and managed more assets than allowed, the Wall Street Journal reported. The firm, which was recently ordered to liquidate by a court in the British Virgin lslands, previously gave false or misleading information to regulators when it transferred management of its fund in September 2021 to an entity in the offshore tax haven, the Monetary Authority of Singapore said Thursday.
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Before the pandemic, the Caribbean was the world’s most tourism-reliant region, according to recent calculations by the World Travel Tourism Council. Made up of dozens of sovereign nations, territories and dependencies that often reacted disparately to the virus, the region was struck unequally by the coronavirus, the New York Times reported. Some islands were walloped by staggering caseloads, while infections on others sometimes dwindled to single digits.
Birds Eye owner Nomad Foods took on additional debt to fund the €225 million acquisition this year of Irish frozen pizza-maker Goodfellas, before receiving the threat of a credit downgrade on Monday after sealing another leveraged deal, the Irish Times reported. Standard & Poor’s (S&P) downgraded the outlook on its rating on Nomad Foods creditworthiness on Monday to “negative” from “stable” after the company announced the new €240 million debt-funded purchase of UK-based frozen food manufacturer of Yorkshire pudding and roast potatoes Aunt Bessies.
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