15.01.2021

Loom Network Is Bringing DeFi to Tron, Binance Chains

As an ERC-20 token, Dai is part of the ethereum blockchain. As the largest DeFi token with over $337 million locked away in contracts according to DeFi Pulse, Loom believes moving Dai onto other chains will help grow the token.

MakerDAO’s Dai stablecoin will be implemented on the tron and binance chains in the near future through Loom Network, a Layer 2 scaling solution for the ethereum blockchain, according to a company blog posting today.

Speaking with CoinDesk, Loom Network CEO and co-founder Matthew Campbell said interoperability with other chains has been a key vision for the Network.

“With interchain asset transfers, we open up some completely new possibilities for things like multichain DeFi,” Campbell said. “As Maker is the clear leader in the space, it made perfect sense to team up and make multichain Dai a reality. This will be a massive step forward in bringing Dai to even more users and developers, and proving out what’s possible with cross-chain assets,” he continued.

Dai will first join the tron blockchain following a testing period. The token will join stablecoin tether on the tron network, which is also hosted on the bitcoin and ethereum blockchains. Loom believes the addition of Dai to tron could spur the development of other DeFi protocols on that protocol.

Binance Chain will also have Dai ported over through Loom, although the timing was not disclosed. Other blockchains Loom plans to build Dai into have not been disclosed either.

Describing the tech, Loom says their network will operate as a Layer 1 ‘transit hub,’ shuffling funds between different protocols such as etherum, tron, or binance. Transfers between chains will be secured through multi-signature validations on the Loom Network which require three-quarters plus one of all Loom validators before transactions can be signed off.

“The idea is that one day soon, a user can pay for a product using Dai regardless of what app, wallet, or chain they are using,” the company finished.

Longfin Must Pay $6.8 Million After Court Backs SEC Fraud Complaint

Fintech firm Longfin Corp. has been ordered to pay almost $6.8 million after a court backed charges brought by the U.S. Securities and Exchange Commission (SEC) that it committed fraud relating to its public offering and Nasdaq listing.

An SEC announcement on Monday indicated that the district court for the Southern District of New York entered a default judgment against Longfin, ordering the firm to repay $3,532,235 – all the proceeds raised in Longfin’s 2017 Regulation A+ offering, plus interest. The company has also been fined $3,243,613.

The SEC claimed in June that Longfin and its CEO, Venkata S. Meenavalli, had falsely stated in an application to the SEC for the offering that the company was largely managed and operated in the U.S. when that was not actually the case.

They also gave away over 400,000 Longfin shares to “insiders and affiliates,” allowing them to fake the number of qualifying shareholders and shares sold in the offering to pass the threshold for listing on Nasdaq.

The SEC also claimed that Longfin and Meenavalli fabricated $66 million in revenue from “sham” commodities transaction – a sum that represented over 90 percent of the firm’s total reported revenue for 2017.

The case is still ongoing, according to the regulator, as is a related criminal action brought by the U.S. Attorney’s Office for the District of New Jersey.

The SEC said it will set up a “fair fund” to refund “harmed” Longfin investors with the money returned by Longfin. The company voluntarily delisted from Nasdaq in May 2018 and shut down in November 2018.

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