Article: Crypto Shadow Banking Explained and Why 12% Yields Are Common

Article - Media, Publications

Crypto Shadow Banking Explained and Why 12% Yields Are Common

Matthew Leising,  27 March 2021

(Bloomberg) — A swathe of shadow banks in the $1.6 trillion cryptocurrency market have figured out how to generate returns of 12% with minimal risk: Lend U.S. dollars to hedge funds so they can buy Bitcoin.

Some of the largest non-bank firms in cryptocurrency including BitGo, BlockFi, Galaxy Digital and Genesis are stepping up to meet investor demand for dollars amid a long-standing weariness by banks to lend to individuals or companies associated with Bitcoin and other digital assets. In this case, they’re lending to hedge funds that need cash to buy Bitcoin for a trade that is almost guaranteed to pay out at annualized returns that have recently hit 20% to 40%.

“The people with all the money — the banks, the brokerages — they’re not in this space yet,” said Jeff Dorman, chief investment officer for Arca Capital Management, which specializes in digital assets. “Everyone wants to borrow dollars, but there’s not enough dollars in the space,” Dorman said. “There is a huge cash shortage.” Continue reading “Article: Crypto Shadow Banking Explained and Why 12% Yields Are Common”

Article: Former Overstock.com CEO says he’s funding ‘a team of hackers and cybersleuths’ in an attempt to prove that Trump won the presidential election

Article - Media, Publications

Former Overstock.com CEO says he’s funding ‘a team of hackers and cybersleuths’ in an attempt to prove that Trump won the presidential election

JOHN L. DORMAN, 29 November 2020

Former Overstock.com CEO Patrick Byrne said that he’s financing “a team of hackers and cybersleuths” in an attempt to prove that President Donald Trump won the 2020 presidential election, according to The Daily Beast.

Byrne, who stepped down from his position at Overstock last year after admitting to a relationship with a Russian spy, recently went on the One America News Network (OAN), a conservative news outlet and a favored media destination of Trump, to detail what he described as a “rigged” election process. Continue reading “Article: Former Overstock.com CEO says he’s funding ‘a team of hackers and cybersleuths’ in an attempt to prove that Trump won the presidential election”