Meta's crypto project has been officially sold2022-02-01 18:47 by Daniela
Tags: Meta, Diem
Diem, the cryptocurrency project backed by Meta CEO Mark Zuckerberg, is shutting down. The Meta-backed cryptocurrency venture Diem said late Monday that it had sold off its assets to Silvergate Capital, a crypto-focused bank in California, after regulators including the Federal Reserve opposed to the project.
Meta reportedly controlled about one-third of Diem, which was launched in 2019 under the name Libra and was also backed by Uber, Shopify and venture capital firms including Andressen Horowitz and Union Square Ventures.
Now that the sale is official, it marks the end of a more than two year effort to launch the stablecoin championed by Mark Zuckerberg. Though the Diem Association was a separate organization from Facebook and parent company Meta, much of its funding came from Facebook. "I believe that this is something that needs to get built, but I get that I'm not the ideal messenger for this right now," Zuckerberg told Congress in a 2019 hearing about his cryptocurrency ambitions.
In a statement, Diem CEO Stuart Levey blamed US regulators for Diem’s demise, and defended the organization's work to minimize risk with "industry-leading controls to protect consumers and combat financial crime."
"Despite giving us positive substantive feedback on the design of the network, it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead," Levey. "As a result, the best path forward was to sell the Diem Group's assets, as we have done today to Silvergate."
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