FalconX buys Arbelos Markets, MicroStrategy’s 21/21 plan, BlackRock’s IBIT bleeds $332m | Weekly Recap

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In today’s summary of the week’s happenings, we cover the leading stories from FalconX, MicroStrategy, Coinbase, and Binance. We delve into the significant withdrawals from BlackRock’s Bitcoin ETF and keep you updated on regulatory matters in China and other noteworthy trends.

FalconX, Arbelos take crypto derivatives to another level

  • FalconX, a digital asset prime broker, acquired Arbelos Markets, a New York-based derivatives trading firm led by industry veterans Joshua Lim, Shiliang Tang, and Sergio Almada Monter.
  • The purchase price wasn’t revealed. Arbelos Markets raised a substantial $28 million in funding back in May. FalconX backed Arbelos at the time.
  • FalconX CEO Raghu Yarlagadda and Arbelos CEO Joshua Lim both emphasized the shared mission to enhance market liquidity and expand crypto’s role in cross-asset portfolios. The partnership marks a pivotal moment for the crypto derivatives market as it evolves to mirror traditional asset classes.

Coinbase looks to Europe

  • Coinbase, the U.S.-based cryptocurrency exchange, has acquired the Cyprus unit of BUX, rebranding it as Coinbase Financial Services Europe. The acquisition grants Coinbase a Cyprus Investment Firm license under the Cyprus Securities and Exchange Commission, enabling it to offer contracts for differences (CFDs) in Europe. CFDs allow traders to speculate on asset price movements without owning the underlying assets, catering to professional and institutional clients.
  • With its new license, Coinbase is positioning itself to compete in global markets, with some analysts predicting it could surpass Charles Schwab, the $7 trillion asset manager, as the world’s most valuable brokerage.

Legal matters

  • Former Terraform Labs co-founder Do Kwon entered a not guilty plea to criminal fraud charges in Manhattan federal court on Jan. 2, following his recent extradition from Montenegro.
  • Defunct crypto lender Celsius Network filed an appeal challenging a U.S. court ruling that dismissed its $444 million claim for damages against FTX. Judge John Dorsey previously rejected Celsius’ claims, stating the firm’s initial proof of claim, which briefly mentioned investigating preference claims, failed to meet the Bankruptcy Code’s requirements. Celsius had reduced its original $2 billion claim to $444 million, but the amendment was deemed untimely and unrelated to the original filing.
  • Meanwhile, former Celsius CEO Alex Mashinsky faces multiple fraud charges, including wire fraud and market manipulation, related to Celsius’ collapse. If convicted, Mashinsky could face up to 115 years in prison.

For the previous edition of the weekly recap, click here.

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2025-01-05 18:33