ZB announced that they were suspending deposit and withdrawal services due to "sudden failure of some core applications".
Robinhood CEO Vlad Tenev wrote, "Since that time, we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody. Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022."
The announcement came the same day that Robinhood was fined $30 million by the state of New York for insufficient anti-money laundering and cybersecurity protections in the crypto portions of their offering.
- "CoinShares reports $21.7M loss tied to Terra implosion", Cointelegraph
Michael Saylor steps down as MicroStrategy CEO as the company reports a $918 million impairment charge on Bitcoin holdings
Unfortunately, that treasury strategy — which in his case also includes taking on more debt to buy more Bitcoin — is not currently working out so well for MicroStrategy, which reported a $918 million impairment charge on their Bitcoin holdings in their most recent earnings report. Saylor stepped down as CEO the same day.
Robinhood fined $30 million over lackluster cybersecurity and anti-money laundering protections in their crypto offering
Robinhood Crypto had certified to the DFS in 2019 that they were in compliance with those regulations, despite the fact that they were not. The DFS imposed a $30 million fine to the company, and also ordered them to hire an outside party to evaluate their regulatory compliance and efforts to remediate the problems with their platform.
Shortly after the exploit, Reaper Farms announced they plained to raise capital via "the sale of vested $OATH tokens from our treasury with desirable terms", which would then be used alongside other assets in their treasury to compensate users.
- "Two Orange County Men Sentenced to Federal Prison for Conning Investors Out of $1.9 Million Through Cryptocurrency Offering", U.S. Attorney's Office, Central District of California
Users deposited their money into projects running on the Ethereum, Tron, and Binance blockchains, and earned rewards for recruiting others to the scheme. The project also used payments from newer investors to pay out earlier investors — a Ponzi scheme.
- "SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme", U.S. Securities and Exchange Commission
- "SEC charges 11 people in alleged $300 million crypto Ponzi scheme", CNBC
Those players have certainly learned something about crypto, as the league informed them that they're not likely to get the funds they were promised after Voyager Digital filed for bankruptcy in early July.