✨ Crypto payments soar: CoinGate processed nearly 1 million payments In 2022

✨ Crypto payments soar: CoinGate processed nearly 1 million payments In 2022 🥲 Former Celsius CEO Alex Mashinsky for fraud 👴 Federal Reserve warned banks about Crypto

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Now, for what’s been happening in the space lately:

✨ Crypto payments soar: CoinGate processed nearly 1 million payments In 2022 

🥲 Former Celsius CEO Alex Mashinsky for fraud

👴 Federal Reserve warned banks about Crypto

Crypto payments soar: CoinGate processed nearly 1 million payments In 2022

Despite the bear market in 2022, cryptocurrency experienced success. CoinGate reported that a whopping 927,294 payments had been made using their service!

Surprisingly though, Ethereum - which is the second biggest crypto by market cap - accounted for only 10% of all transactions compared to Bitcoin's 48%. USDT, a stablecoin, accounted for 14.8% of payments - clearly showing that stablecoins have their place in the crypto world.

And while 1 million payments don't seem like much, considering that it's only through one provider, the potential for crypto payments to take off in a big way is exciting! The biggest credit card providers couldn't boast those numbers when they first started out, so the sky is really the limit for crypto payment services.

Former Celsius CEO Alex Mashinsky for fraud

New York sued the former Celsius CEO Alex Mashinsky for fraud on Wednesday. According to the civil suit filed by the state’s attorney general, Mashinsky is accused of defrauding investors, and if found guilty, he will be required to pay damages and give back money to them as well as barred from holding any business in New York.

The matter is further complicated by the fact that Celsius is currently in the middle of a contentious bankruptcy process. On Wednesday, a judge ruled that digital assets held by customers in their Celsius accounts are considered property of the company due to terms of service. The ruling is still subject to an appeal, as creditors and other parties involved battle for control over the bankrupt business.

The attorney general's lawsuit against Mashinsky is separate from the bankruptcy proceedings and aims to hold him accountable for any financial wrongdoing he may have committed, including misappropriation of investors’ funds. The state has not specified how much money Mashinsky allegedly took or the amount of damages it is seeking.

The Celsius drama drags on, with Mashinsky now hopefully facing the legal consequences of any unlawful decisions he may have made while running Celsius. The attorney general's lawsuit is a step in the right direction to protect investors and ensure justice is served.

Federal Reserve warned banks about Crypto

The Federal Reserve Banks have released a joint statement to warn banks about the potential risks of engaging in crypto-related activities. The statement warned that participating in any form of crypto-related activity such as holding crypto or providing services to customers that involve accessing, storing, or transferring crypto on an open or decentralized network is “highly likely” to be inconsistent with "safe" banking practices.

The statement also highlighted the potential legal, consumer protection and financial crime risks associated with these activities. In addition, the Federal Reserve Banks reminded banks that any services offered must comply with applicable laws and regulations. Furthermore, they encouraged banks to carefully consider these risks when assessing whether it is appropriate to provide such services and develop sound risk management processes in doing so.

The FED, however, does not prohibit any banks from providing crypto-related services. Rather, the FED is encouraging banks to take a more cautious approach when it comes to offering such services and managing related risks.

While the FED had previously expressed concern about cryptocurrency activities, this joint statement further emphasizes their position that commercial banks should approach these activities with caution and ensure they develop sound risk management processes in doing so.

If banks are smart and utilize secure practices such as procuring insurance, then it appears that this statement presents them with the freedom to offer crypto services. Traditional banks becoming crypto-neutral is certainly good news for the industry as a whole, and will help to further legitimize cryptocurrencies.