Today in Crypto: Celsius hires new lawyers

As part of the ongoing investigation, India’s Directorate of Enforcement (ED) is looking into more details regarding violations of exchange rates by crypto firms, according to a July 6 report from the Economic Times.

Among those summoned were leaders from CoinDCX, CoinSwitch and others. ED operates under the Foreign Exchange Management Act, which restricts payments to entities outside India.

In other news, CoinDesk reported on Friday (July 8) that Blockchain.com could potentially lose $ 270 million in loans to the troubled venture capital firm Three Arrows Capital.

Blockchain.com CEO Peter Smith said the Three Arrows “are rapidly going bankrupt”, with the report noting that the latter company has seen a liquidation order in the British Virgin Islands. Smith said Blockchain.com will not face similar issues and customers “will not be affected.”

Furthermore, the International Regulatory Strategy Group, a think tank supported by the City of London Corporation, recently said that global rules will allow central banks’ digital currencies (CBDCs) to work well in cross-border use.

However, the UK has said that any digital version of sterling may not be available for a while, at least before the second half of the decade, according to a Friday Reuters report. Many other countries have explored them, including the United States, and the Federal Reserve said a digital dollar could help with the value of the dollar.

In other news, the Russian financial monitoring agency Rosfinmonitoring has said that it uses software to track crypto transactions, in the hope of improving these properties, Reuters wrote on Friday.

This is happening while Moscow wants to add new crypto regulations. The report noted that the Bank of Russia is skeptical of crypto and wants to ban all trade and mining, although the Russian government reportedly wants to regulate the industry instead.

In addition, the price of bitcoin has risen slightly, with investors speculating that this may be a sign that the liquidity crisis is over, CNBC reported on Friday.

Bitcoin had risen 13.63% for the seven-day trading week ending on Friday, and may have its best week since October last year, Coin Metrics said.

In several crypto news, Reuters reported on Thursday (July 7) that Brazilian federal police have carried out an operation against a criminal gang that it said was laundering money from illegal gold mining with crypto tokens.

The police arrested five people and served 60 search and seizure orders in that case.

Meanwhile, BlockFi investors are looking at the possibility that some of their holdings may be deleted, Bloomberg wrote on Saturday (July 9).

BlockFi has lagged behind and managed to get a capital injection from the crypto exchange FTX, but the Private Shares Fund marked BlockFi’s warrants as worthless for its June report. FTX offered a $ 400 million revolving credit facility as a lifeline.

In addition, Bloomberg also reported on Saturday that CoinFlex has taken legal action to recover $ 84 million in losses from just one customer.

The company can also sign a joint venture with another crypto exchange later to fix things. The exchange said that a counterparty, which it later said was longtime investor Roger Ver, did not repay $ 47 million from a margin call. The total debt increased later after things were calculated, the report says.

Finally, Celsius Network, the crypto network that froze withdrawals amid falling cryptocurrencies, is hiring new lawyers for restructuring councils, including a potential bankruptcy option, the Wall Street Journal reported Sunday (July 10).

The lawyers are from Kirkland & Ellis, and have replaced the former lawyer for the company.

Due to the freezing of accounts, customers have not had access to their accounts for several weeks. Celsius reported $ 11.8 billion in assets in May – and the company has reshuffled its board over the past week.

For all PYMNTS crypto coverage, subscribe to the daily crypto newsletter.