The cryptocurrency industry is no longer in its infancy. Almost every part of the world is now aware of this market and some have even started to accumulate large quantities of these digital assets.
Bhutan, a country located in the middle of the Himalayas, is one of them. The country has secretly invested millions of dollars in Bitcoin, Ethereum and other cryptocurrencies.
This country used crypto companies that are now defunct is BlockFi and Celsius for their cryptocurrency purchases.
According to court records, BlockFi and Celsius is a client of Druk Holding & Investments (DHI), which is Bhutan’s $2.9 billion investment firm, according to Forbes said.
While Druk Holding & Investments is responsible for overseeing the domestic asset portfolio, the institution has also been discreetly building a crypto asset portfolio since at least 2022.
The case was accidentally made public during the mass collapse of crypto companies in 2022, when FTXCelsius and other companies declared bankruptcy.
This is the amount of Bitcoin that was purchased
User Deposit and Withdrawal – 90 Days – Source: Celsius SoFA
Shout out to those who were able to Chapter 7 liquidate themselves at 100 cents on the dollar pic.twitter.com/nTdIVFrBXq
— Celsius Loans (@CelsiusLoans) February 20, 2023
Furthermore, a filing related to Celsius reveals that “DHI has withdrawn over $65 million and deposited around $18 million to buy crypto. In addition, the transaction logs reveal that Druk Holding & Investments, along with an account named “Druk Project Fund”, executed hundreds of transactions between April and June 2022. This includes sending, withdraw and borrow Bitcoin, Ethereum, Tether and some other assets.
BlockFi’s lawyers claimed that DHI failed to repay a $30 million loan in March and sued the organization to recover unclaimed assets.
BlockFi says that DHI refused to pay back the entire loan after selling 1,888 Bitcoins used as collateral. It was later valued at $76.5 million. However, the CEO of DHI stated that “the issue with BlockFi has been resolved”.
See also: Bank of Israel plans to launch its own digital currency
Synthetic Kyptos
