A consensus mechanism first promoted by ethereum co-founder Vitalik Buterin, consensus mechanism Proof-of-Stake (PoS) rewards token holders with percent yields of a coin, depending on the length and amount held.
Crypto custodian BitGo has added staking to its services, beginning with cryptocurrencies dash and algorand, the company said. Through BitGo Staking, coin holders can earn between 7 and 13 percent annual returns.
Promoted as a more energy-efficient alternative to Proof-of-Work (PoW) – the consensus mechanism behind bitcoin – exchanges and custodians have slowly added staking rewards for PoS coins throughout the year. In March, Coinbase’s custodial arm began offering staking with annual returns of around 6.6 percent.
BitGo said dash and algorand will earn staking rewards while in remaining in cold storage.
“In order to be a great custodian, we need to provide our clients with the ability to use their assets in custody”, BitGo CTO Ben Chan said in a statement. “Staking provides our clients with returns on their investments without ever moving their assets out of custody.”
As part of the initiative, BitGo acquired staking infrastructure firm Hedge. Through Hedge’s assets, such as its hardware security modules (HSMs) often used instead of cold wallet solutions, clients can select BitGo’s platform or choose a provider of their own.
Crypto Capital Principal Indicted on Fraud, Confirming Bitfinex Allegations
Crypto Capital principal Oz Yosef was indicted on three criminal counts by the U.S. Attorney’s Office of the Southern District of New York Wednesday, Oct. 23, confirming statements made by Bitfinex’s general counsel Stuart Hoegner Friday.
According to court documents, Yosef, aka Oz Joseph, has been indicted on conspiracy to commit bank fraud, bank fraud and conspiracy to operate an unlicensed money transmitting business.
In an overt act cited by court documents, Yosef sent a text to an unnamed source “regarding the need to transfer $10,000,000 to a bank located in the Bahamas, knowing that the funds would be transferred from a bank account maintained with a bank located in Manhattan, New York.”
Following criminal investigations by multiple international bodies, including U.S. authorities, this past Spring, Crypto Capital’s funds were frozen. Of the funds seized from the banking solution platform, $880 million belonged to crypto exchange Bitfinex which maintained a relationship with the company. The lost funds triggered an investigation by the New York Attorney’s Office into the relationship between Bitfinex and sister firm Tether.
On Thursday, Crypto Capital president Ivan Manuel Molina Lee was extradited to Poland by Polish authorities on charges of money laundering. Lee is charged with laundering 1.5 billion zloty, or about $390 million.
Upon Lee’s arrest, Hoegner released a statement on behalf of the exchange which claimed Bitfinex to be the victim of fraud. Hoegner stated Yosef had been indicted by the Southern District of New York, although court documents had not yet been released to support that.
As a result of the indictment, Yosef will forfeit listed assets “representing the number of proceeds traceable to the commission of said offenses.”
Court documents name a list of specific assets including those of Crypto Capital principal Reginal Fowler, charged with running a shadow banking service by the U.S. Attorney’s Office this past Spring and Global Trade Solutions LLC, the parent firm of Crypto Capital. Eligibility Criterion, Eurocontrol, and Spiral Global Development are also listed by the court.
