The Bitcoin Saga

[jpinard]

@DraiAC

they took a big risk in fibbing about have FDIC insured accounts.

Based on everything we know about crypto, 99.9% sure it was this.

[Lantz]

A quick Google has them at least listing a banking partner. It’s not crazy that they would have cash accounts insured but also I would guess that not very many people have actual cash invested there vs crypto holdings.

USD held with Voyager is FDIC Insured

[DraiAC]

The banking partner offers a prepaid debit card, which actually uses USD Coin somehow, not USD. The terms and conditions specifically say it’s not FDIC insured. Near as I can tell, you can’t hold USD in a bank account with Voyager, so the FAQ is either woefully out of date or pure bullshit.

So, they advertise a product that most folks would assume is a real bank account (a debit card issued by a bank), but you actually give your dollars to Voyager and they load that card with “USD Coin”, which is crypto and not at all insured. At least they call out their bullshit in a small print T&C. Quite insidious though.

[Lantz]

Wow, that’s gross

[HumanTon]

Facebook, er Meta, quietly ends its crypto plans. But don’t worry, it swears it will use the technology in the metaverse!

Meta is pulling the plug on its failed crypto project this September

Meanwhile, Bitcoin starts the day by trading just below $19k.

[Woolen_Horde]

Paywalled, so I’ll just post the snippit from Techmeme

[sharaleo]

@Meta

Users received a message today advising them to withdraw funds.

Haha, Meta doesn’t even know how crypto works!

[LeeAbe]

Meanwhile…

https://www.washingtonpost.com/business/2022/07/03/crypto-banks-risk-lummis/

Not sure why this won’t turn into a normal link. Headline: Bill to grant crypto firms access to Federal Reserve alarms experts

[scottagibson]

dan nguyen

[Ginger_Yellow]

@DraiAC

The banking partner offers a prepaid debit card, which actually uses USD Coin somehow, not USD. The terms and conditions specifically say it’s not FDIC insured. Near as I can tell, you can’t hold USD in a bank account with Voyager, so the FAQ is either woefully out of date or pure bullshit.

So, they advertise a product that most folks would assume is a real bank account (a debit card issued by a bank), but you actually give your dollars to Voyager and they load that card with “USD Coin”, which is crypto and not at all insured. At least they call out their bullshit in a small print T&C. Quite insidious though.

This would seem to be what they’re referring to:

Though as Frances Coppola says:

Now, this is odd. If movements in and out of the account are controlled entirely by the bank on behalf of Voyager’s customers, then Voyager should not be able to suspend US dollar withdrawals. But it has. Clearly, therefore, Voyager is controlling access to the money, despite its statement that it does not provide “any services pertaining to the movement of, and holding of, USD”.
And there is a second mystery. If all US dollars belonging to its customers are in the omnibus account as it claims, why has Voyager suspended US dollar withdrawals? It clearly had to suspend conversion of crypto balances into US dollars, because it now has no means of obtaining those dollars. But there seems no reason to suspend withdrawal of existing US dollar balances - unless there isn’t enough cash in the omnibus account to reimburse all US dollar depositors.

[Calelari]

Anyone know how FDIC insurance works for omnibus accounts? I have a headache already this morning so I’m not about to dig into banking regulations.

[Ginger_Yellow]

@Calelari

Anyone know how FDIC insurance works for omnibus accounts? I have a headache already this morning so I’m not about to dig into banking regulations.

It doesn’t apply here anyway because the bank hasn’t gone bust.

[Telefrog]

Polium

Good luck with that.

[Sabotai]

Hilarious 'Web 3 Console' Will Never, Ever Happen

Kotaku agrees with you ;)

[JonRowe]

Ouya 3.0

(The intellivision amico is Ouya 2.0)

[JD]

Not sure if that’s an adequate comparison. The Ouya, after all, did come out and it had games you could play on it.

[MarinusWA]

This exceeds the Phantom in vapourware measured.

[Woolen_Horde]

8K and raytracing and it’s not much larger than the controller?

Can you get even more bullshit than that?

[Rock8man]

Presumably that stuff will be done on the “web3”.

[Thrag]

Another one bites the dust.

'Tragic Contagion' Spreads: Major Crypto Lender Vauld Suspends Trading After...

This inspired a sad laugh.

As a result of the weakness, Vauld also said it has enlisted financial and legal firms to explore restructuring options that will “best protect the interests of Vauld’s stakeholders,” and claimed freezing customer withdrawals would help “facilitate” the efforts.

Translation: We’re stopping customers from withdrawing their money so the shareholders can have it.