Cryptocurrency Investors Go To Court To Get Their Money Back, Wall Street Pessimistic About Fintechs

Hello. I’m Aaron Weinman. Winter is really here for the crypto space. Fintechs like Coinbase and Block have nervous gains on the way and Wall Street is bracing for recession.

Before we get into this, just a polite reminder that it is the last call for nominations for the 2022 Insider Class of Wall Street Rising Stars. Name here.

Additionally, there is breaking news from London after the Bank of England raised interest rates by 50 basis points for the first time since 1995.

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Photo illustration of a stock market arrow going through a courthouse with cryptocurrency exploding out of it.

Jeremy Woodhouse / Getty Images; Stock;

1. August may be hot in New York City, but it has been a winter storm for cryptocurrencies. The month is just four days old, but already the US Securities and Exchange Commission is cracking down on questionable crypto schemes and Wall Street has lowered expectations for fintechs like Coinbase and Block.

Coinbase, which reports Q2 earnings on August 9, lost more than three-quarters of its market cap this year (about $ 18 billion on Wednesday), while Block lost more than half of its value (about $ 50 billion). Wednesday). . Freeze reporting revenue today.

To rub salt into cryptocurrency wounds, startup Nomad lost nearly $ 200 million on Tuesday after hackers exploited a flaw in the blockchain transfer platform’s security defenses. The hackers were able to allow users to enter any value into the system and steal funds, even though Nomad did not have the necessary resources in its deposit base.

At the heart of the matter, however, is that popular cryptocurrencies have spiraled this year. Bitcoin, for example, nearly halved the value.

Companies, from Coinbase to Celsius, have flown too close to the sun by hiring and firing thousands of people. Robinhood, the pandemic treasure that has brought everyone from the Bodega clerk to the Wall Streeters pundits playing the stock market, has partly blamed the free fall of cryptocurrencies for its latest round of job cuts.

Investors, scorched by big losses, are now preparing for judicial battles. More than 200 cases have been filed, some solved in the order of a million dollars, some investors have lost and others are still pending. Insider’s Jack Newsham spoke to lawyers and investigators about what investors are doing to try and get their money back.

In other news:

Chicago downtown

Chicago downtown

Steve Geer / Getty Images

2. Angelo Gordon’s investors just learned of a rape complaint against a former executive. A California pension fund chief executive said the litigation “raises concerns” and that the fund “is closely monitoring the situation.”

3. Disgruntled lenders are furious at the process of marketing a loan marketed by Goldman Sachs and JPMorgan, Bloomberg reported. Early lenders of a loan for Avaya hired Akin Gump law firm to examine legal options on what they considered inadequate disclosures about the transaction.

4. Carlyle has amassed a portfolio of 130 Brooklyn apartments. Carlyle’s investment is the latest example of how banked investment firms are becoming corporate landowners and replacing traditional homeowners mom and dad.

5. By staying in the real estate sector, mortgage rates will fall back to Earth after an unprecedented rise. Falling rates should make homes cheaper, Bank of America analysts said.

6. The Healthcare Startup Calibrate’s CEO used a Zoom call to take out the staff. A few minutes later, the employees’ company laptops were automatically wiped and restarted.

7. Adtech Criteo completed the acquisition of rival Iponweb at a revised price. The deal was jeopardized because a large part of the Iponweb team is based in Russia. The revised deal valued the goal at $ 250 million, plus a $ 100 million profit.

8. The New York City controller blamed BlackRock for his fossil fuel holdings, according to this Gothamist report. Brad Lander and national climate activists are calling on the wealth manager to stop investing in expanding fossil fuel infrastructure.

9. Here are five little-known stocks that one of Germany’s leading portfolio managers is betting on. Andreas Strobl is a Senior PM at Berenberg Bank and his job is to unearth successful and little-known companies to invest in. He shared his insights and actions to avoid with Insider.

10. Goldman Sachs and Thoma Bravo just helped an artificial intelligence startup raise $ 90 million. Here’s a look at the launch deck Aisera used to raise the money. Thoma Bravo, meanwhile, has just agreed to buy the Ping Identity company for about $ 2.8 billion.

Offers made:

  • Alternative wealth manager Balbec Capital has raised over $ 1.5 billion for its fifth and largest flagship fund to date. The fundraiser also includes a $ 100 million expandable co-investment vehicle.
  • Brightwood Capital has made a term loan to the Yardbird Group, a Miami-based restaurant company. The proceeds will come from Brightwood’s third fund and Yardbird will use the money to enhance its existing operations.

Curated by Aaron Weinman in New York. Advice? E-mail or tweet @ aaronw11. By Hallam Bullock (tweet @hallam_bullock) in London.

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