Crypto Firms Turn to Government Loans as Pandemic Strikes, Critics Not Pleased

Wednesday 3 July 2020, 3:21 AM AEST - 1 month ago

Documents this week showed billion-dollar crypto firms, the likes of ConsenSys, CipherTrace, Bittrex, and Tron, applied for public loans in the U.S. to protect against capital erosion. However, critics arent pleased.

The Anti-Government Government Club

Over 75 companies in the blockchain and cryptocurrency space – from sub-sectors like exchanges, general services, wallets, and security – applied for U.S. government loans since the latters rollout in April 2020.

Yesterday, documents received by CoinDesk revealed over $30 million was taken by crypto-companies. This includes billion-dollar players and even firms like Quantstamp, which raised millions for its token in an ICO.

Reeling from the economic implications of a pandemic, the U.S. government announced payroll loans to support employment in small businesses. Criteria were a bare minimum – any service with more than one physical location that employed less than 500 persons were allowed.

Moreover, if 60% of the loans went towards employees keeping their jobs for a minimum of eight weeks; the entirety of the loan would be forgiven.

Crypto firms – despite their narrative of quelling government help and breaking away from the financial system – wholeheartedly embraced the loan payouts. Firms like the Zcash overseer Electric Coin Company, Ethereum venture studio ConsenSys and Tron took high-six figures under the legalities of being small businesses.

Even crypto funds featured on the list – including Polychain Capital and Unchained Capital. Both firms claim to manage hundreds of millions in crypto-assets.

Satoshis Bailout Message Violated

For those in the space, Bitcoin creator Satoshi Nakamoto included the now-famous message in the first-ever ...

Read full story on BTCMANAGER