David Hoffman has apologized for spreading rumors he calls the ‘Wells Notice Carpet Bombing’ targeting altcoin projects including Lido Finance. LDO, on the other hand, saw a hard sell amid this speculation.
The podcaster who started Lido and altcoin FUD apologized!
David Hoffman, co-founder of content studio Bankless, has apologized for spreading rumors about what he calls the ‘Wells Notice Carpet Bombing’ targeting crypto firms, including decentralized finance protocol Lido Finance (LDO). The ‘carpet bombing’ referred to Welss notices allegedly sent to crypto firms last week, Hoffman was told by a source. Hoffman, on the other hand, shared the unconfirmed information on the Bankless Show podcast on March 3 and made the following statement, specifically mentioning Lido:
Lots of Wells notifications were sent to most of the DeFi apps. […] Wells announcements went viral in the industry last week. It hasn’t come to light yet. I think Lido bought one.
The same day, Hoffman announced on Twitter that Lido denied the claim and apologized for naming the altcoin project in the rumor. “Lido does not deserve special focus here,” he said, before reiterating that unannounced Wells notices were sent to crypto companies. In this direction, Hoffman shared the following:
After checking with other sources, it’s generally assumed to be unannounced Wells Notices. However, it is impossible to say how many or how recently they were communicated.
https://twitter.com/TrustlessState/status/16317855542642995202
The rumor led to a nearly 20% drop in Lido DAO (LDO) price on March 3, according to CoinMarketCap data. Lido Finance has yet to respond to news sources’ request for comment.
Is a wave of Wells notifications spreading in the crypto market?
A Wells notice is a warning sent by a regulatory authority to inform about violations found as a result of an investigation. Essentially, it’s a letter informing a company about an upcoming enforcement action.
As you follow on cryptokoin.com, stablecoin issuer Paxos has recently filed a complaint from the US Securities and Exchange Commission (SEC) for allegedly violating investor protection laws in relation to the Binance USD (BUSD) token, which the commission claims is an unregistered security. Wells got the notice.
Also, rumors about Wells notifications recently hit USD Coin (USDC) issuer Circle. However, Dante Disparte, Circle Pay’s chief strategy officer and head of global policy, quickly debunked the speculation, as we reported on Cryptokoin.com.
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