The Digest contains the following:

• Elon Musk, SpaceX, and Tesla (NASDAQ:) slammed with $258B lawsuit for alleged DOGE “pyramid scheme”.

• Huobi Thailand shuts down – Binance looks to re-enter South Korea.

• State securities regulators investigate Celsius – BlockFi liquidates Three Arrows Capital.

• Circle launches Euro Coin (EUROC) – a euro-backed stablecoin.

• Celsius Network, Investors Trapped as stETH Drys Up and De-Pegs

Elon Musk, SpaceX, and Tesla Slammed with $258B Lawsuit for Alleged DOGE “Pyramid Scheme”

A lawsuit has been filed against Elon Musk and his company SpaceX, as well as Tesla Inc by a dogecoin investor for $258 billion. He claims that Musk promoted (DOGE), which is a pyramid scheme.

Keith Johnson, a plaintiff in a federal lawsuit filed at the Federal Court of Lower Manhattan alleges Musk’s involvement in pushing the Dogecoin price up only for it to plummet. He states that Musk understood DOGE had no value but promote it for the profit of trading.

The plaintiff describes himself as “an American citizen who was defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme.”

Johnson seeks $86 billion in damages and triple damages of $172 trillion. This order would prohibit Musk and his companies promoting Dogecoin and declare that Dogecoin trading is gambling.

Flipsider:

• Musk confirmed that he was moving forward with plans to buy Twitter (NYSE:). Made his plansFor crypto Twitter.

What You Need to Care About

Elon Musk has yet to respond on the lawsuit but Dogefather, a self-proclaimed Dogefather, has a remarkable history of supporting Dogecoin through his social media.

Huobi Thailand Shuts Down – Binance Looks to Re-Enter South Korea

Huobi, eighteen months since its launch in Thailand, has now announced that its Thailand operations will be permanently halted on July 1st 2022. The license to operate in Thailand was revoked May 5th by the Thai SEC.

Having Failed to comply with the Thailand’s local regulations, Huobi will now be forced to shut down its Thai affiliate. Bitkub is the leading crypto-exchange licensed in Thailand.

Seventeen months after shutting down its South Korean affiliate, the world’s largest crypto exchange is rumored to be preparing a re-entrance. Binance originally cited South Korean transactions and low usage as reasons to close down the market.

Binance removed Won trading pairs and payment options from its exchange in August 2021. Now, Changpeng Zhao, the CEO of Binance, has confirmed the exchange’s potential re-entry to Korea.

Flipsider:

• CZ confirms that there is the possibility for a reentry into South Korea. However, he emphasizes that this exchange is only investigating the possibility and has no specific plans.

You should care

Experts agree that crypto must be more compliant with the regulations to achieve the highest level of adoption.

State Securities Regulators Investigate Celsius – BlockFi Liquidates Three Arrows Capital

Celsius Network, a crypto lender announced that it has suspended all withdrawals on all platforms this week. The move was immediately investigated by the Securities regulators in at least five U.S. States.

The officials met Monday 13 June. According to reports, state securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington consider the probe to be a “priority.”

BlockFi is a competitor of the Celsius Network and has disclosed its role as one the lenders in the liquidations Three Arrows Capital (3AC), which totalled $400 million on Tuesday, June 14.

The crypto lender confirmed that it had liquidated a “large client”, though they did not dislose any specific names. However, elaborating on the event, CEO Zac Price tweeted that the client “failed to meet its obligations on an overcollateralized margin loan”.

Flipsider:

• Three Arrows Capital was rumored to be at high risk due to mass liquidations. The company however has assured it that it will remain solvent.

What You Need to Care About

Investors and companies with significant crypto stakes will face financial problems until cryptocurrencies are out of the “enduring winter”.

Circle Launches Euro Coin (EUROC) – a Euro-Backed Stablecoin

Circle, the issuer (USDC) of the stablecoin, is pleased to announce the launch of Euro Coin (EUROC), which is backed by Euro.

EUROC is Circle’s second major fiat-pegged crypto asset, and is fully backed by euro-denominated reserves in the U.S. Circle revealed that the reserves for EUROC are held by leading financial institutions, including Silvergate bank.

According to Circle, the EUROC will have “the same security, liquidity, and transparency” as USDC. New opportunities will be created for payments, FX on-chain, trade finance and commerce as well as wider digital asset market use-cases.

EUROC launched as ERC-20 token on the blockchain. Circle CEO Jeremy Allaire announced the date of the EUROC token’s release on the Ethereum network himself, revealing that it will be “available to mint and redeem on June 30.”

Flipsider:

• The UST collapse has brought about extreme regulation on stablecoins.

What You Need to Care About

This stablecoin, which is Euro-backed, marks an important shift in the direction of greater utility and acceptance for cryptocurrencies.

Investors and Celsius Network Trapped As stETH Dries up and De-pegs

The situation brought on by the crisis at Celsius Network, Three Arrows Capital, and other large players could be set to deteriorate further, as Lido’s stETH pool dries up. It is possible that the cryptocurrency market could experience another liquidity crisis due to the fact that the biggest pools of stETH have been empty.

Data from the chain shows that many investors have been redeemed their staked Ethereum pool for ETH. This has left the pool nearly empty. Although the pool had $4.6billion in May, it has since dropped to $430m at the time this article was written.

Not only has the stETH pool dried up, but intense selling pressure also caused the token to suffer a de-peg similar to Terra’s UST stablecoin. While Ethereum trades at $1,101 at press time, Lido’s stETH is trading at $1,033, having dropped to an interday low of $984.

CoinMarketCap

Investors looking for exit from the stETH pool could find it difficult to do so, particularly after its de-pegging. Celsius, in particular, could face financial difficulties as its money could get stuck in stETH after the pool runs out.

Flipsider:

• While large holders like Celsius and Three Arrows have redeemed their stETH, analysts believe retail investors could suffer the bulk of the losses, similar to with Terra’s crash.

What You Need to Care About

A crypto meltdown could result from the current fragility of the market.

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