Tesla Sells 75% Bitcoin Holding, Former Coinbase Employee Arrested, Blockchain.com Cuts 25% Staff

Written by Lindi Miti

July 22, 2022

Tesla Sells 75% Bitcoin Holding

Elon Musk, the CEO of Tesla, announced that the company has sold off 75% of its bitcoin holding. The cash-strapped company added $963 million to its balance sheet after the sale. Musk added that the company is still holding on to its Dogecoin. 

Tesla, an electric automobile manufacturer, first bought bitcoin in February 2021 for $1.5 billion. The company sold 10% of its position two months later for a profit. Tesla now holds $218 million worth of bitcoin. 

Musk disclosed the selling of bitcoin during Tesla’s earnings conference. The tech mogul added that the decision to sell was not a “verdict on bitcoin.” But the company needed the cash. He also said that the company will consider reinvesting at a future date.  

Former Coinbase Employee Arrested 

Ishan Wahi, a former Coinbase employee, was arrested and charged with insider trading. According to the US Department of Justice, Wahi allegedly tipped his brother and a friend regarding cryptocurrencies that were going to be listed on Coinbase. The three illegally gained $1.5 million in profits from insider trading. 

“Although the allegations, in this case, relate to transactions made in a crypto exchange – rather than a more traditional financial market – they still constitute insider trading. As alleged, the defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totaling approximately $1.5 million,” said FBI Assistant Director Michael J. Driscoll.

The three accused allegedly devised a scheme to buy cryptocurrency coins before they were listed on Coinbase from June 2021 to April 2022. Wahi allegedly leaked confidential listing information on 14 occasions involving at least 25 different cryptocurrencies.  

Blockchain.com Cuts 25% Staff

According to a CoinDesk report, Blockchain.com, a Luxembourg-based cryptocurrency exchange, announced that it is cutting 25% of its workforce. In addition, the company is shutting down its offices in Argentina and canceling its plans to expand to other countries, citing crypto winter. 

In addition to cutting off staff, Blockchain.com will also reduce its executive salaries. The company will slow down on institutional lending, mergers, and acquisitions to ride out the bear market. According to CoinDesk, the affected employees will get severance pay, ranging from 4 to 12 weeks. 

Written by Lindi Miti © Crypto University 2022  

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