F|T: The FinTech Times – Crypto Losses Rise as Canadian Firms Adhere to Anti-Money Laundering Standard

Plus: A third of Bolt’s staff verifies.

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Wealthsimple among an international group of companies joining the Anti-Money Laundering Cryptographic Standard (BETAKIT)

Nine Canadian companies have joined the group, including Wealthsimple, Coinsmart, Netcoins, Shakepay, Tetra Trust, Coinsquare, VirgoCX, BlocPal and Balance. The Travel Rule Universal Solution Technology (TRUST), as it is known, was launched in February by major US crypto firms like Coinbase, Gemini, Kraken, and Robinhood.


Payments startup Bolt has started laying off employees. (THE NEW YORK TIMES)

San Francisco-based Bolt, the fast-growing online payments startup that was valued at $11 billion earlier this year but recently instituted a hiring freeze, has laid off a third of its workforce. For some, the financial ramifications go far beyond lost future wages given the company’s stock lending program.


Gig Economy Moves banking app raises $5 million in OMERS-led funding round (BETAKIT)

According to Moves, the investment will contribute to its mission to “make the gig economy work for its workers”. The company previously raised $9.1 million in 2020 according to data from Crunchbase. Moves has been noted as a Canadian tech company to watch in the past.


Klarna lays off 10% of its workforce (TECHCRUNCH)

Cutting 10% of the company’s workforce means around 700 people will lose their jobs in fintech. This will potentially affect all domains and offices worldwide. “I’m no stranger to sharing good news and bad news. However, today is the toughest yet,” Klarna co-founder and CEO Sebastian Siemiatkowski wrote in a post shared with all employees. “As much as we like it to be, Klarna doesn’t exist in a bubble.”


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Canadian innovators wonder what proposed SR&ED review will accomplish (BETAKIT)

Speaking on the phone with BetaKit, Munro noted that the scientific research and experimental development program — better known as SR&ED — isn’t working, in his view. But he wasn’t convinced that another review of the $4 billion annual program would fix things. After all, the SR&ED program has been modified and revised almost constantly since its inception in 1944.


LayerZero Labs is seeking backing that would triple its valuation to $3 billion (THE BLOCK)

After the $135 million raise, Pellegrino described the company’s goal as “creating the generic messaging layer that underpins all interoperability between blockchains.” Funds raised in March are being used to support the development of more dApps on the protocol.


The federal government wants to tackle Canada’s intellectual property problems, but is its strategy working? (BETAKIT)

While companies like Ranovus demonstrate how Canadian technology companies can scale through IP development, many in the IP industry believe that most Canadian startups do not derive value from their IP, which has placed the Canada behind its peers in the global race for IP rights. .


FINTRAC targets DeFi in report aimed at law enforcement and its Five Eyes counterparts (THE LOGIC)

FINTRAC warns law enforcement agencies and its Five Eyes counterparts of the risks associated with decentralized finance, which it says comes with “risks of money laundering and terrorist activity financing” . The report comes amid growing regulatory scrutiny of the cryptocurrency industry.


From Argentina to Nigeria, people viewed Terra as more stable than the local currency. They lost everything (REST OF THE WORLD)

Valeria saw her savings dwindle to zero, unable to withdraw money from protocols, which had blocked withdrawals. “I invested in a stablecoin that today is worth $0.08,” she told Rest of the World. “I feel sick and helpless.”


Power Corp’s FinTech portfolio value plummets as Wealthsimple faces May 2 markdown (BETAKIT)

Power Corp disclosed the reduction last week in its first-quarter 2022 earnings report, noting that the fair value of the company’s stake in Wealthsimple was down C$147 million, or $0.22 per share. .


The Caisse de dépôt at the crypto casino (RADIO-CANADA)

Like other crypto investors, Celsius users have been hit hard. Some have complained that they lost all their savings after getting loans on the platform, which acts as a cryptocurrency bank. In less than two weeks, according to the company’s website, funds managed by Celsius on behalf of its clients have shrunk by $6 billion, from $18 billion to $12 billion. By October 2021, that amount had peaked at $27 billion.


How a Toronto comedian invested $205,000 in crypto – then lost it all while Coinbase shut him out (TORONTO STAR)

“I remember just sitting there staring at the empty account,” the investor says. Coinbase responds that it is not responsible for losses due to compromised login credentials.


Round13 launches new venture capital fund with initial US$70 million to support blockchain companies providing “the foundation” of Web3 (BETAKIT)

The venture capital firm has secured US$70 million for its recently launched digital asset fund, from an undisclosed group of investors led by a ‘large Canadian pension fund’, with backing from others institutions, wealth management offices, high net worth individuals and Round 13 team members.


Founder alleges YC-backed fintech startup ‘copy-pastes’ his company (TECHCRUNCH)

Andy Bromberg, CEO of a16z-backed startup Eco, claims that Pebble, another fintech startup that sneaked out this morning, “plagiarized” Eco’s materials and business model. Bromberg posted a Twitter thread this afternoon saying that Pebble was engaging in “cut and paste, immaturity, lying and spying”.


Michael Edgar

Michael is a multimedia journalist and Carleton Journalism alumnus working in Ottawa and Montreal. Follow him on Twitter @mwedgar.