CoinMarketCap News, July 12: Twitter Tells Elon Musk to Finish Takeover... Or Else

Twitter has hit back at Elon Musk — and is accusing the world's richest man of "knowingly violating" an agreement to buy the social network. The law firm Wachtell, Lipton, Rosen & Katz — representing Twitter — says his termination is "invalid and wrongful." Lawyers also challenge an assertion that Twitter has suffered a "Company Material Adverse Effect," which would have enabled Musk to exit the deal without paying a $1 billion fee. Twitter went on to insist that the takeover deal has not been terminated, and that the company is demanding Musk and his partners "comply with their obligations under the agreement." The attorneys also warned they are willing to go through the courts unless Musk pushes ahead with the deal.

Voyager Digital has admitted that its customers may not receive all of their cryptocurrency deposits back. In a new update, the company warned "exact numbers will depend on what happens in the restructuring process." The firm was thrown into financial turmoil after Three Arrows Capital defaulted on loans worth more than $650 million. Payouts will also hinge on how successful Voyager is in getting these funds back. Customers are furious with the plans to compensate them. One wrote on Twitter: "What I want is my crypto! I don't want something you believe is best for the customers! We trusted you and you failed us."

To make matters worse, new court papers claim that the embattled founders of the bankrupt crypto hedge fund Three Arrows Capital are yet to cooperate with liquidation proceedings. A photograph taken by Bloomberg shows the firm's Singapore office empty and locked up, with unopened mail scattered on the floor. Court papers also suggest that the whereabouts of Kyle Davies and Zhu Su are unknown, but their lawyers have insisted they plan to cooperate. Liquidators are battling to ensure 3AC's remaining assets aren't "dissipated" — warning this risk is heightened because the fund owns crypto and NFTs that are "readily transferable."

Tougher, international regulation for cryptocurrencies could be on the horizon. The Financial Stability Board says it's going to make recommendations for a crypto crackdown to G20 finance ministers and central bank governors in October. Its goal is to promote consistency internationally — and avoid "regulatory arbitrage," which could allow businesses or criminals to take advantage of relaxed rules in some parts of the world. In a statement, the FSB warned: "The recent turmoil in cryptoasset markets highlights their intrinsic volatility, structural vulnerabilities and the issue of their increasing interconnectedness with the traditional financial system."