Katherine Ross

BlockFi submitted a request to swap its trade-only assets to the Gemini Dollar stablecoin.



The move, the bankrupt crypto lender said, would allow the assets to be withdrawn.&nbsp;



Currently, the assets aren’t available for withdrawal due to “practical reasons associated with the attributes of the digital coins.” The assets include Algorand (<a href="https://blockworks.co/price/algo">ALGO</a>), Bitcoin Cash (<a href="https://blockworks.co/price/bch">BCH</a>) and Dogecoin (<a href="https://blockworks.co/price/doge">DOGE</a>). While the filing specifically names the Gemini Dollar stablecoin, it does note that the assets could be transferred to another stablecoin of the debtors’ choosing.&nbsp;



These cryptos comprise a small amount of BlockFi’s overall wallet assets, roughly half a percent.



Custodial partner <a href="https://blockworks.co/tag/bitgo">BitGo</a> is unable to handle the process that would be necessary to “transmit blockchain transactions” for the assets as they are.



<a href="https://blockworks.co/tag/blockfi">BlockFi</a>’s committee of unsecured creditors is in support of the request.&nbsp;



The <a href="https://blockfi.com/wallet-withdrawal-faqs">move</a> comes after BlockFi initiated certain withdrawals earlier this month, after <a href="https://blockworks.co/news/blockfi-customer-withdrawals-summer">building a new product functionality</a> in order to process the withdrawals on the platform.&nbsp;



Prior to the opening of certain withdrawals, the <a href="https://blockworks.co/news/sec-foregoes-blockfi-penalty">SEC said that it would “forego” the $30 million</a> BlockFi penalty until investors are repaid. The <a href="https://blockworks.co/tag/sec">SEC</a> charged BlockFi a $50 million penalty in February of last year, penalizing the lender for allegedly selling BlockFi Interest Accounts (BIAs) to the public.



The crypto lender <a href="https://blockworks.co/news/blockfi-eyes-bankruptcy-as-ftx-fallout-continues-report">declared bankruptcy in November</a> of last year following the collapse of <a href="https://blockworks.co/tag/ftx">FTX</a>, it instituted a “Platform Pause” back on Nov. 10, 2022, freezing assets on its site.



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BlockFi wants to convert some of its crypto assets to stablecoins

Casey Wagner

In the SEC’s <a href="https://blockworks.co/news/binance-changpeng-zhao-face-sec-charges">charges against Binance</a> on Monday, the regulator advanced its constraints against cryptocurrencies, claiming 10 additional tokens were in violation of securities law.&nbsp;



In federal court documents, the <a href="https://blockworks.co/tag/sec">SEC</a> deemed the following tokens securities: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI. The SEC refers to these ten tokens and others as “crypto asset securities” in its <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.1.0.pdf">complaint</a>.&nbsp;



“Defendants have unlawfully solicited US investors to buy, sell and trade crypto asset securities through unregistered trading platforms,” the SEC wrote in the court filing.&nbsp;



The SEC has not levied any known civil suits or brought charges against any of their issuers.



The “SEC complaint against Binance and CZ alleges about every possible crypto securities law violation and loops in a ton of tokens,” Mike Selig, counsel in the Asset Management Department and a member of the Willkie Digital Works practice, said in a <a href="https://twitter.com/MikeSeligEsq/status/1665749215782268933?s=20">tweet</a>. The “SEC doesn’t mince words: defendants’ ‘blatant disregard’ of law allowed them to ‘enrich themselves by billions…placing investors’ assets at…risk.’”&nbsp;



<a href="https://blockworks.co/price/sol">SOL</a>, Solana’s native token, <a href="https://blockworks.co/prices">lost as much as 8%</a> Monday on the news of the <a href="https://blockworks.co/tag/binance">Binance</a> suit. Polygon’s <a href="https://blockworks.co/price/matic">MATIC</a> and Cardano’s <a href="https://blockworks.co/price/ada">ADA</a> were each down close to 6%. 



In its allegations against Binance, the SEC claimed the world’s largest crypto exchange exchange misappropriated user funds, in a legal action that appeared to bear some similarities to the charges brought against FTX and founder Sam Bankman-Fried.&nbsp;



<h2 class="wp-block-heading">SEC says Binance tokens likewise securities</h2>



The SEC also claimed that Binance and its executives engaged in unlawful trading and issuing of unregistered securities.&nbsp;



The SEC said Binance’s native <a href="https://blockworks.co/price/bnb">BNB</a> token and stablecoin <a href="https://blockworks.co/price/busd">BUSD</a> are securities, and it categorized a Binance-related staking affiliate as likewise offering unregistered securities. The SEC’s move to list additional tokens in a lawsuit against an exchange is <a href="https://blockworks.co/news/qa-the-sec-classified-9-tokens-as-securities-now-what">not new</a>. The agency listed 9 crypto tokens as securities in its <a href="https://blockworks.co/news/sec-charges-former-coinbase-product-manager-with-insider-trading">2022 lawsuit against a former Coinbase employee over insider trading</a>, which has since been settled.

SEC Labels 10 Tokens Securities in Binance Lawsuit

Morgan Chittum

<div id="highlights-block_613ba10355e07" class="highlights">
 <ul>
 <li>Algorand’s native crypto (ALGO) hit a two-year high this week, trading at $2.42</li>
 <li>Some 150 million ALGO have been allocated to the fund, worth roughly $300 million, as of press time</li>
 </ul>
 
</div>



Algorand Foundation, the blockchain project behind Algorand, <a href="https://www.prnewswire.com/news-releases/algorand-foundation-launches-300-million-usd-fund-to-support-defi-innovation-301373155.html">announced</a> the launch of a $300 million fund focused on the decentralized finance (DeFi) space on Friday.



The fund, called Viridis, will focus on financing the development of DeFi on Algorand’s network, the organization said in a<a href="https://www.prnewswire.com/news-releases/algorand-foundation-launches-300-million-usd-fund-to-support-defi-innovation-301373155.html"> statement</a>. More specifically, Viridis will focus on decentralized exchanges, non-fungible token platforms, money markets, synthetic asset applications and options markets.&nbsp;&nbsp;



In addition, the foundation announced two &#8216;SupaGrants&#8217; which create additional DeFi infrastructure such as an oracle network and a bridge network, totalling $10 million for both. Some 150 million of Algorand’s native token ALGO has been allocated to the fund, which is worth roughly $300 million, as of press time.



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="262" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg" alt="Algorand " class="wp-image-7782" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=512 512w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Algorand.jpeg?w=80 80w" sizes="(max-width: 512px) 100vw, 512px" /></figure></div>



“Algorand is a proven blockchain network that meets the rigorous speed, security, and stability requirements needed to launch enterprise-ready applications. The Algorand ecosystem has experienced significant growth this year in NFTs, DeFi, and beyond,” Stephen Duignan, Head of Marketing, told Blockworks in a statement. “More than half a billion dollars flowed into the ecosystem in the first half of 2021 alone.”



Founded by computer scientist Silvio Micali in 2017, Algorand’s native token (ALGO) has jumped 58.89% in a week. ALGO hit a two-year high on Thursday, trading at $2.42, according to Messari. Following the foundation’s announcement, ALGO slid to $2.01, respectively.



“As we look ahead, there will be increased adoption of Algorand-based DeFi applications and decentralized governance that will continue this momentum,” Duignan added.



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