Today in Crypto: Scammers Impersonate the US Department of State, MicroStrategy Buys-Sells-Buys Bitcoin, Midas Investments Closes Doors Due to Major Losses

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.
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Security news

• The US Oregon Division of Financial Regulation (DFR) warned crypto investors to be careful of various scams within the crypto space, such as a recent one involving a website claiming to be managed by the US Department of State. The fake website said it was working to get FTX customer assets returned to them and asked for the investor’s FTX username and password, along with other account information.

Investment news

• Technology company MicroStrategy purchased approximately 2,395 Bitcoin (BTC) for $42.8 million in cash at an average price of approximately $17,871 per bitcoin, between November 1 and December 21 through its MacroStrategy subsidiary, according to a US Securities and Exchange Commission (SEC) filing. On December 22, it sold BTC for the first time, approximately BTC 704 for $11.8 million, planning that the loss would offset previous capital gains. On December 24, MacroStrategy acquired another BTC 810 for $13.6 million, at an average price of approximately $16,845 per bitcoin, it said.
• Investment firm Midas Investments is shutting down its platform after suffering significant losses in 2022, according to an announcement. In the spring of 2022, Midas decentralized finance (DeFi) portfolio suffered a cumulative loss of $50 million (20% of $250 million assets under management (AUM)) it said, and added: “After Celsius and FTX events, the platform experienced over 60% of AUM being withdrawn, creating a large asset deficit. Based on this situation and current CeFi [centralized finance] market conditions, we have reached the difficult decision to close the platform.”
• Bitcoin miner Argo Blockchain said it would sell its Helios mining facility to US-based crypto financial services firm Galaxy Digital for $65 million and refinance asset-backed loans with a new $35 million loan with Galaxy. Transactions will reduce total indebtedness by $41 million, it said. Argo will maintain ownership of all mining machines, and Galaxy will host Argo’s fleet of Bitmain S19J Pros at Helios.
• The cryptocurrency market is poised to grow by $1.47 billion during 2022-2026, found a ResearchAndMarkets.com report. The market is driven by rising investment in digital assets, increased availability of crypto wallets, and increased FinTech spending. The study identifies the rising inclination toward digital currency as one of the prime reasons driving the crypto market growth during the next few years, while the growth of blockchain technology and acceptance of cryptocurrency by retailers will lead to sizable demand in the market, it said.

Exchange news

• Crypto exchange Kraken said on Wednesday that it would exit the Japanese market in January 2023. It stated that “Kraken has decided to cease its operations in Japan and deregister from the Financial Services Agency (JFSA) as of January 31, 2023. […] Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time.”

Legal news

• Crypto exchange Gemini and its founders Tyler and Cameron Winklevoss are facing a class-action lawsuit in the US over claims the company sold interest-bearing accounts without registering them as securities, Bloomberg reported. The investors accused the company and its founders of fraud and violations of the Exchange Act in a proposed class-action complaint filed Tuesday in Manhattan federal court, it said.