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Custodian Xapo restructures business after allegations of stolen bitcoin turnover
Coinbase Owned Custodian To Become Digital Bank.
The changes are taking place against the backdrop of legal proceedings against the company.
At the time of restructuring, some restrictions will be introduced.
By the end of 2020, the cryptocurrency custodian plans to restructure the business and become a digital bank.
Cryptocurrency exchange Coinbase custodian Xapo announces business restructuring.
The service wrote about this on its official blog..
As a result of the changes, users will not be able to add funds to their account using credit cards starting June 11.
In addition, bank transfers will only be supported in excess of a certain minimum amount, depending on the user’s location..
“Over the next few months, until the launch of the new Xapo (late 2020), some features of the Xapo account may be partially or completely disabled depending on which country you live in,” the announcement says..
The company notes that the changes will not affect the services of the Xapo BTC wallet, and the bitcoins will remain safe.
Swivel 180 °
Xapo announced plans to restructure its business on May 5. Then the custodian announced his intention to become a digital bank by the end of 2020.
The company will also move its operations from California to Gibraltar, which offers a regulatory framework for cryptocurrency companies.
Xapo Changes Come Amid Litigation After Custodian Was Accused Of Turning Stolen Bitcoins.
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Previously BeInCrypto editors wrote, that according to a lawsuit filed by German citizen Dennis Novak, Xapo and cryptocurrency exchange Indodax contributed to the turnover of stolen cryptocurrencies.
According to the lawsuit, Xapo holds 19.99 BTC from the stolen assets. Cryptocurrency exchange Indodax has 479.69 BTC.
Largest of its kind
In August 2019, Coinbase acquired the Xapo custodian.
According to various reports, the deal was worth $ 55 million.
As a result of the purchase, Xapo came under the control of Coinbase Custody, making the relatively young crypto-exchange custodian the world’s largest cryptocurrency repository by capitalization.
Coinbase Custody today holds over $ 7 billion for 120+ customers in 14 countries.