The Week in Crypto – Paxos, BUSD, Bitcoin ATMs, and Celsius

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This week in the crypto world we saw British Bitcoin ATMs getting eradicated, Paxos doing the same to BUSD, and Celsius exiting bankruptcy through a deal with Novawulf. Nope, us neither.

Eyes down for a full house.

Police Raid UK Bitcoin ATM Sites

British police this week raided several sites in the northern city of Leeds and took away illegally operating Bitcoin ATM machines, 11 months after the country’s financial watchdog warned that many were not licensed.

As part of what is thought to be the UK’s first effort to clamp down on the illicit use of crypto ATMs, the sites suspected of housing the were raided by West Yorkshire police force’s digital intelligence and investigation unit police and the Financial Conduct Authority (FCA), in a sign that the FCA is taking unlicensed Bitcoin ATM operation seriously.

Celsius to Exit Bankruptcy Thanks to Novawulf Deal

Novawulf Digital Management was this week chosen by bankrupt crypto lender Celsius Network to act as the sponsor for its proposed Chapter 11 restructuring plan. The plan, which was endorsed by the Celsius Official Committee of Unsecured Creditors, will result in most creditors getting a one-time crypto payment while those with larger claims would receive equity in a new company.

Court documents indicate that approximately 85% of its users are expected to receive back 70% of their account balances in liquid cryptocurrencies such as BTC, ETH and stablecoins, which is more than many would have been fearing when it collapsed.

Paxos and BUSD Hit by U.S. Authorities

This week’s main story has been the multifaceted story regarding Binance’s BUSD stablecoin and the company that mints it, Paxos. There have been letters from the Securities and Exchange Commission that have since been denied, Circle snitching on Binance as a kind of revenge for Binance delisting USDC, and much more besides.

This is a story that will inevitably run and run, so get the lowdown to avoid getting left behind.