Latest Crypto News: Nepal Orders ISPs To Disable Crypto Websites, BlockFi Repaid Investor $15 Million Over Crypto Crash

Here are some of the major developments from the world of crypto over the last few days
Latest Crypto News: Nepal Orders ISPs To Disable Crypto Websites, BlockFi Repaid Investor $15 Million Over Crypto Crash

The Nepalese government has warned Internet service providers in the Himalayan nation with legal action if they allow any cryptocurrency related activities on their networks.

The Nepal Telecommunications Authority on January 8, 2023 issued a warning ordering all Internet service providers (ISPs) to refrain from running and maintaining “websites, apps, or online networks” that are associated with cryptocurrencies.

Earlier in September 2021, the nation’s national bank had outlawed mining and trade of cryptocurrencies. Later, in April 2022, the Nepalese telecommunications regulator requested information from the general public regarding anyone engaging in prohibited activities, such as cryptocurrencies.

The most recent warning threatens legal action against email service providers and ISPs if any cryptocurrency-related behaviour occurs on their networks. Virtual currency transactions that are prohibited in the country “are rising in recent days,” the telecommunications regulator said in its directive to ISPs in the country.

The restrictions notwithstanding, Nepal is ahead of countries, such as the UK and Indonesia at number 16 in Chainalysis’ 2022 Global Crypto Adoption Index.

BlockFi Says It Repaid Investor $15 Million To Pay Over Crypto Crash

Executives of the bankrupt cryptocurrency lender BlockFi Inc have paid an investor $15 million to end a threatening litigation over the company’s plummeting stock value in the summer of 2022, according to the company’s attorneys.

BlockFi attorney Joshua Sussberg stated at a bankruptcy court hearing in Trenton, New Jersey, the US, that the settlement satisfied allegations by the investor, known only as “Counterparty A,” who had purchased equity shares that were issued as part of executive compensation packages.

The shares were sold below the $6 billion to $8 billion estimate of the company’s value in January 2022, but their value fell during the summer, as the fall of two cryptocurrencies wreaked havoc on the crypto markets.

According to Sussberg, the BlockFi investor threatened legal action, claiming that BlockFi and its staff should have been more forthcoming about the risks of cryptocurrency market contagion.

BlockFi deemed the investor’s accusations to be “specious”, but on August 23, 2022, it reached a confidential deal in which BlockFi officials gave the investor $15 million back, according to Sussberg.

BlockFi founder Zac Prince paid the amount under that deal, paying back $6.144 million.

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